Lot sizing and furnace scheduling in small foundries

Authors:
Silvio A. de Araujo;Marcos N. Arenales;Alistair R. Clark
Affiliations:
Instituto de Biociências, Letras e Ciências Exatas, Departamento de Ciências da Computação e Estatística, Universidade Estadual Paulista, São José do Rio Pr ...;Instituto de Ciências Matemáticas e de Computação, Departamento de Matemática Aplicada e Estatística, Universidade de São Paulo, Caixa Postal 668, São Carlo ...;Faculty of Computing, Engineering and Mathematical Sciences, University of the West of England, Bristol BS16 1QY, UK
Venue:
Computers and Operations Research
Year:
2008

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Abstract

A lot sizing and scheduling problem prevalent in small market-driven foundries is studied. There are two related decision levels: (1) the furnace scheduling of metal alloy production, and (2) moulding machine planning which specifies the type and size of production lots. A mixed integer programming (MIP) formulation of the problem is proposed, but is impractical to solve in reasonable computing time for non-small instances. As a result, a faster relax-and-fix (RF) approach is developed that can also be used on a rolling horizon basis where only immediate-term schedules are implemented. As well as a MIP method to solve the basic RF approach, three variants of a local search method are also developed and tested using instances based on the literature. Finally, foundry-based tests with a real-order book resulted in a very substantial reduction of delivery delays and finished inventory, better use of capacity, and much faster schedule definition compared to the foundry's own practice.