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(Reference retrieved automatically from Web of Science through information on FAPESP grant and its corresponding number as mentioned in the publication by the authors.)

Integrated lot sizing and blending problems

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Author(s):
Fiorotto, Diego Jacinto [1] ; Jans, Raf [2, 3] ; de Araujo, Silvio Alexandre [4]
Total Authors: 3
Affiliation:
[1] Univ Estadual Campinas, Fac Ciencias Aplicadas, BR-13484350 Limeira, SP - Brazil
[2] HEC Montreal, Montreal, PQ H3T 2A7 - Canada
[3] CIRRELT, Montreal, PQ H3T 2A7 - Canada
[4] Univ Estadual Paulista, Dept Matemat Aplicada, BR-15054000 Sao Jose Do Rio Preto, SP - Brazil
Total Affiliations: 4
Document type: Journal article
Source: Computers & Operations Research; v. 131, JUL 2021.
Web of Science Citations: 0
Abstract

The standard blending problem consists of combining components to produce a final product with a given demand, while satisfying specific criteria with respect to the global blend and minimizing the total cost. The Bill-Of-Material (BOM) (or recipe) indicates which components are used and in which proportion. Typically, there is some flexibility in the planning process with respect to the proportion used for each of the components, where it may vary between a minimum and a maximum level instead of being fixed. This problem has been widely studied in a single period setting. However, the problem becomes more complex when we take into account a longer time frame. In such a case, demand for the final product occurs in several time periods, and both the final product and the components can be held in stock. In the integrated lot sizing and blending problem, the decisions relate to the production of the final product via the blending process, and the production (or procurement) of the components over an extended time horizon. We propose three mathematical formulations for this integrated problem and present a theoretical analysis of their Linear Programming relaxation bounds. In a computational experiment, we analyse the impact of important parameters such as the level of flexibility in the BOM, the variance in the procurement cost among the components, and the variance of the proportion of the components in the total mix. Furthermore, we analyse the value of integration by comparing the solution of the integrated models to the solutions of approaches that do not fully capture this integration such as a lot-for-lot approach, just-in-time models without inventory for the final product or components, and a hierarchical approach. (C) 2021 Elsevier Ltd. All rights reserved. (AU)

FAPESP's process: 16/01860-1 - Cutting, packing, lot-sizing, scheduling, routing and location problems and their integration in industrial and logistics settings
Grantee:Reinaldo Morabito Neto
Support type: Research Projects - Thematic Grants
FAPESP's process: 18/18754-5 - DIFFERENT SOURCES OF FLEXIBILITY APPLIED TO THE LOT SIZING PROBLEM
Grantee:Diego Jacinto Fiorotto
Support type: Regular Research Grants
FAPESP's process: 18/14895-3 - Lot sizing problems: integrations and extensions.
Grantee:Silvio Alexandre de Araujo
Support type: Scholarships abroad - Research