Integrating order acceptance decisions with flexible due dates in a production planning model with load-dependent lead times

Abstract

We consider a tactical planning problem, which integrates production planning decisions together with order acceptance decisions, while taking into account the dependency between workload and lead times. The proposed model determines which orders to accept and in which period they should be produced so that they can be delivered to the customer within the acceptable flexible due dates. When the number of accepted orders increases, the workload and production lead time also increase and this may result in the possibility of missing customer due dates. This problem is formulated as a mixed integer linear program for which two relax-and-fix heuristic solution methods are proposed. The first one decomposes the problem based on time periods while the second decomposes it based on orders. The performances of these heuristics are compared with that of a state-of-the-art commercial solver. Our results show that the time-based relax-and-fix heuristic outperforms the orderbased relax-and-fix heuristic and the solver solution as it yields better integrality gaps for much less CPU effort.

Increasing accuracy and robustness of order promises

“…Jung (2012) develops a fuzzy linear programming solution calculating delivery dates which are sent to the customers for negotiation. Brahimi, Aouam and Aghezzaf (2014) propose two relax-and-fix heuristics for a mixed integer linear programming approach for integrated production planning and order acceptance decisions for order batches. Yang and Fung (2014) present two order promising solutions integrating order acceptance, due date assignment and order scheduling in a multi-site supply chain.…”

Safety stock placement with market selection under load-dependent lead times

“…They adopt a robust optimization approach resulting in a linear program. Brahimi et al (2015) study the combined effect of load-dependent lead times, order acceptance and flexible customer due dates under deterministic demand, proposing two relax-and-fix heuristics for the integrated problem. Aouam et al (2018) use a robust optimization approach to model demand uncertainty and clearing functions (Missbauer and Uzsoy, 2020) to capture queueing behavior in an integrated order acceptance and production planning problem.…”

Exact Methods and Heuristics for Order Acceptance Scheduling Problem under Time-of-Use Costs and Carbon Emissions

“…solutions form the solution space in classical scheduling problems. In the literature, for both single-or multimachine systems, a variety of configurations of problems are considered such as sequencedependent setup times [9,28,29], preemption [11] or resource constraints [10,30]. As for our research, the immediate related works are those presented in [9,28,29].…”

“…In the meantime, as these problems are mostly NP-hard, a wide range of metaheuristics from local search to EA have been utilized and have shown very robust performances [36][37][38]. Besides, reports in the literature describe an order-based and a time-based FR heuristics applied to an OAS problem under resource constraints [30] that both achieve a tighter gap for large instances. A recent work of Tarhan et O guz [39] proposes a two-phase matheuristic that exploit a time-indexed model.…”

“…The TI On/Off model described in Section 4.1 is adapted to suit to the FR heuristic procedure. The previously introduced decision variables α j and β j are defined by the group of constraints (30), for all j ∈ J k .…”