Optimization of the cutting process integrated to the lot sizing in multi-plant industries

Abstract

Many production and cutting industrial processes have setup, production, holding and material waste costs in the production process, which may vary according to the plant (factory). The optimization of these processes involves the multi-plant lot sizing and cutting stock problems. Such problems present a correlation. However, several approaches are found in the literature that treats these problems in a decoupled way and there is an absence of studies that address the integrated problem involving multiple plants. Treating both problems separately can increase overall costs. On the other hand, good results can be obtained by addressing integrated problems. The objective of this project is to propose a mathematical formulation for multi-plant lot sizing problem integrated to cutting stock problem as well as a methodology for its resolution. For this, computational tests will be performed in order to validate the proposed model and methodology. (AU)