MULTI‐MACHINE, MULTI‐PRODUCT PRODUCTION SCHEDULING AND INVENTORY CONTROL

Abstract

Abstract This paper deals with a multi‐machine, multi‐product lot size determination and scheduling problem. The model developed here considers not only the usual inventory‐related operational cost, but also the costs that depend on under‐ or over‐utilization of available men and machines. It penalizes overtime or idle time at any facility. The solution minimizes the inventory and resource‐related costs and not just inventory costs. A heuristic is developed to determine the solution from the model and to modify it, as necessary, to obtain a conflict‐free, repetitive, and cyclic production schedule for an infinite horizon. Although this model is developed for a manufacturing situation, the words machine, job, and machine shop are used in a symbolic sense, and hence the model can be used in practice in a variety of circumstances.