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Multi-item lotsizing in capacitated multi-stage serial systems

Author: Van Wassenhove, Luk N. ; Maes, Johan ; Billington, Peter ; Blackburn, Joseph D. ; Millen, Robert A.INSEAD Area: Technology and Operations Management Series: Working Paper ; 91/11/TM Publisher: Fontainebleau : INSEAD, 1991.Language: EnglishDescription: 19 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: This research examines the performance in multi-stage, serial settings of lot-sizing heuristics found to have been effective for the capacitated multiple-product, single-stage problem. Single-stage heuritics in the study includes Dixon/Silver, Lambrecht/Vanderveken, the Dogramaci et al., single and multi-pass, and different versions of the ABC heuristic of Maes and Van Wassenhove. These heuristics have been altered in two ways. First, to allow for the inclusion of the cost modification procedures developed by Blackburn and Millen. Second, the feasibility routines have been modified to work in multi-level environments. Both modifications attempt to coordinate decisions made across stages concerning lot sizes. Simulation is employed to determine the relative performance of these methods. The experimental design factors include TBOs (or time between orders), the coefficient of variation of demand, the capacity available at each stage, the number of stages
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This research examines the performance in multi-stage, serial settings of lot-sizing heuristics found to have been effective for the capacitated multiple-product, single-stage problem. Single-stage heuritics in the study includes Dixon/Silver, Lambrecht/Vanderveken, the Dogramaci et al., single and multi-pass, and different versions of the ABC heuristic of Maes and Van Wassenhove. These heuristics have been altered in two ways. First, to allow for the inclusion of the cost modification procedures developed by Blackburn and Millen. Second, the feasibility routines have been modified to work in multi-level environments. Both modifications attempt to coordinate decisions made across stages concerning lot sizes. Simulation is employed to determine the relative performance of these methods. The experimental design factors include TBOs (or time between orders), the coefficient of variation of demand, the capacity available at each stage, the number of stages

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