Study of mathematical models and solution methods to the lot sizing problem with product substitution

• Grant number: 13/03837-9
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: September 01, 2013
• End date: August 31, 2014
• Field of knowledge: Engineering - Production Engineering - Operational Research
• Principal Investigator: Maristela Oliveira dos Santos
• Grantee: Rafael Soares Ribeiro
• Host Institution: Instituto de Ciências Matemáticas e de Computação (ICMC). Universidade de São Paulo (USP). São Carlos , SP, Brazil
• Associated research grant: 10/10133-0 - Cutting, packing, lot-sizing and scheduling problems and their integration in industrial and logistics settings, AP.TEM

Abstract

In this project, we propose the study and the development of heuristic methods based on mathematical formulation for the lot-sizing problem with product substitution. The lot sizing problem addressed in this project consist in finding a production plan that minimizes production, setup, inventory and substitution costs, and meets without delay the demands of items in the periods. In some production systems, there are higher quality products or products with good performance that may be used to meet the demand of other products with lower quality or performance, but there is a cost involved in this substitution. Thus, is considered the problem of determining a production plan with the option of substitution of products with minimal cost. In the initial phase of this project, a mathematical model of literature to the lot-sizing problem with substitution will be studied and implemented using the optimization package CPLEX 12.4. To validate the implemented model, generated data from the literature will be used. As the classic mathematical model for the problem is hard to solve, in a second phase, we intend to develop heuristic methods based on mathematical formulation for finding solutions to the problem. (AU)