Proceedings of the Korean Operations and Management Science Society Conference (한국경영과학회:학술대회논문집)
- 2000.04a
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- Pages.61-64
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- 2000
A Heuristic Algorithm for A Multi-Product Dynamic Production and Transportation Problem
다종제품의 동적 생산-수송 문제를 위한 휴리스틱 알고리즘
Abstract
This paper analyzes a dynamic lot-sizing problem, in which the order size of multiple products and a single container type are simultaneously considered. In the problem, each order (product) placed in a period is immediately shipped immediately by containers in the period and the total freight cost is proportional to the number of each container type employed. Also, it is assumed that backlogging is not allowed. The objective of this study is to determine the lot-sizes and the shipping policy that minimizes the total costs, which consist of ordering costs, inventory holding costs, and freight costs. Because this problem is NP-hard, we propose a heuristic algorithm with an adjustment mechanism, based on the optimal solution properties. The computational results from a set of simulation experiment are also presented.
Keywords