| Full text | |
| Author(s): |
Campos, Rafael A.
;
Caunhye, Aakil M.
;
Alem, Douglas
;
Munari, Pedro
Total Authors: 4
|
| Document type: | Journal article |
| Source: | INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH; v. N/A, p. 37-pg., 2023-08-22. |
| Abstract | |
We study a production lot-sizing problem inspired by a veterinary pharmaceutical plant in which demands are uncertain. First, we develop a deterministic capacitated lot-sizing model for the production of animal pesticides, performed in three machine-specific stages. Second, we propose a traditional robust optimisation formulation following the popular budget-of-uncertainty approach. Third, we derive a novel fragility-based approach that circumvents well-known issues with traditional robust optimisation approaches, such as the estimation of budgets of uncertainty, the over-conservatism of robust solutions and the sensitivity of solutions to the decision maker's risk attitude. The fragility-based approach is grounded in the idea of minimising violations, over the full uncertainty support, from a user-specified cost target. It avoids the estimation of budgets of uncertainty and produces less conservative solutions via explicit modelling of constraint violation. We demonstrate the effectiveness of our approach on instances built upon real data provided by our industrial partner, a major player in the Brazilian veterinary pharmaceutical sector. The results show that our fragility-based approach reduces average total costs across all instances and maintains greater model stability under different target estimations. It also preserves cost savings when bottlenecks are introduced in production and when inventory costs and capacities are varied. (AU) | |
| FAPESP's process: | 19/23596-2 - Rich vehicle routing problems: models and algorithms for deterministic and stochastic variants |
| Grantee: | Pedro Augusto Munari Junior |
| Support Opportunities: | Regular Research Grants |
| FAPESP's process: | 19/22235-6 - Aircraft routing under uncertainty via robust optimization |
| Grantee: | Rafael Ajudarte de Campos |
| Support Opportunities: | Scholarships in Brazil - Master |
| FAPESP's process: | 16/01860-1 - Cutting, packing, lot-sizing, scheduling, routing and location problems and their integration in industrial and logistics settings |
| Grantee: | Reinaldo Morabito Neto |
| Support Opportunities: | Research Projects - Thematic Grants |
| FAPESP's process: | 13/07375-0 - CeMEAI - Center for Mathematical Sciences Applied to Industry |
| Grantee: | Francisco Louzada Neto |
| Support Opportunities: | Research Grants - Research, Innovation and Dissemination Centers - RIDC |