1 AIT Asian Institute of Technology

Lot sizing and sequencing of dependent jobs in a steel mill

AuthorSuriyaarachchi, Rasika Harischandra
Call NumberAIT Thesis no.IE-89-22
Subject(s)Steel industry and trade
Economic lot size

NoteA thesis submitted in partial fulfilment of the requirements for the degree of Master of Engineering
PublisherAsian Institute of Technology
AbstractThe real-life case of multiple product single facility production system studied here has a special feature known as the sequence dependency which makes the lot sizing problem more complex and computationally intractable. In the aggregation and disaggregation approach developed to handle the situation two groups of products are formed based on the sequence dependent setup times of the selected set of products. The aggregate 0-1 mixed integer programming formulation based on the Simple Plant Location Problem is solved and then by disaggregation product wise lot sizes and sequences are determined. The solution is further improved using a heuristic lot elimination procedure by trading off between the minor setup costs and the inventory carrying costs. The improved solution is then compared with a lower bound to the exact solution derived assuming independent setup estimators. Since there are no formal setup costs accountable, an opportunity cost for the loss of profits during the setup down time is used instead. Another formulation with the profit loss as a separate cost is also tested. The latter provides a greater flexibility in dealing with the practical situation but lacks the possibility of improving the solution obtained.
Year1989
TypeThesis
SchoolSchool of Engineering and Technology (SET)
DepartmentDepartment of Industrial Systems Engineering (DISE)
Academic Program/FoSIndustrial Engineering (IE)
Chairperson(s)Van Oudheusden, D.L.;
Examination Committee(s)Tabucanon, Mario T.;Nagarur, Nagendra N.;
Scholarship Donor(s)DAAD, Fedaral Republic of Germany;
DegreeThesis (M.Eng.) - Asian Institute of Technology, 1989


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