Using composite variable modeling to achieve realism and tractability in production planning: An example from automotive stamping

Ada Barlatt, Amy Cohn, Yakov Fradkin, Oleg Gusikhin, Craig Morford
2009 IIE Transactions  
Applying traditional mathematical programming techniques to problems in production planning can lead to tremendous challenges. These include non-linearities, very large numbers of constraints, and weak linear programming relaxations. To ensure tractability, problems are often either simplified in scope or limited in instance size, resulting in solutions that may no longer address important real-world issues. As an alternative, we consider the use of models based on composite variables
more » ... that capture multiple decisions simultaneously) as a way to solve complex production planning problems. We use the problem of scheduling an automotive stamping facility as a demonstrative example, showing how composite variable models and a novel corresponding algorithm can lead to high-quality, realistic solutions with acceptable run times. In our approach, we do not restrict batch sizes, labor availability, or sequencing of part types; nor do we fix the number of changeovers a priori. In addition, we allow sequence-dependent changeover times and varying due dates. Computational results are presented using data from Ford Motor Company.
doi:10.1080/07408170802512594 fatcat:hl3icprbpjg4rkcgb6ydpkhequ