Lot-Sizing and Scheduling Problem Considering Fixture Resource Constraints: A Decomposition Solution Approach

Lot-sizing and scheduling determines the size of production lots and the production sequence simultaneously, avoiding infeasible and sub-optimal situations caused by sequential decision-making. In some enterprises like the internal combustion engine manufacturer, some resources like fixtures are expensive and scarce, which leads to restrictions on production capacity. This paper studies a lot-sizing and scheduling problem considering fixture resource constraints to seek the trade-off between financial goals and customer satisfaction. With the introduction of the resource flow network, an integrated model is formulated to determine the optimal size and schedule of the product lots. A solution approach based on the logic-based Benders decomposition algorithm is proposed to solve the problem. Comparison with commercial solver demonstrates the effectiveness of our approach in different instance sets. Sensitivity analyses provide valuable managerial insights to the production managers.