Nonlinear programming for multiperiod capacity planning in a manufacturing system

In this paper, we present nonlinear programming methods for capacity planning in a manufacturing system that consists of a set of machines or work stations producing multiple products. We model the facility as an open network of queues where capacity at each work station in the system may be changed...

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Published inEuropean journal of operational research Vol. 96; no. 1; pp. 167 - 179
Main Authors Bretthauer, Kurt M., Côté, Murray J.
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier B.V 10.01.1997
Elsevier
Elsevier Sequoia S.A
SeriesEuropean Journal of Operational Research
Subjects
Online AccessGet full text
ISSN0377-2217
1872-6860
DOI10.1016/S0377-2217(96)00061-6

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Abstract In this paper, we present nonlinear programming methods for capacity planning in a manufacturing system that consists of a set of machines or work stations producing multiple products. We model the facility as an open network of queues where capacity at each work station in the system may be changed in each of a finite number of time periods. To determine the timing and size of capacity changes, we present two nonlinear programming models and methods for solving the resulting problems. One model involves minimizing total capacity costs such that plant congestion is controlled via upper limits on work-in-process. The other model involves minimizing a weighted sum of product lead times subject to budget constraints on capacity costs. We present solution methods for continuous and discrete capacity options and convex and nonconvex (e.g., economies of scale) capacity cost functions. We use branch and bound and outer approximation techniques to determine globally optimal solutions to the nonconvex problems. Computational testing of the algorithms is reported.
AbstractList In this paper, we present nonlinear programming methods for capacity planning in a manufacturing system that consists of a set of machines or work stations producing multiple products. We model the facility as an open network of queues where capacity at each work station in the system may be changed in each of a finite number of time periods. To determine the timing and size of capacity changes, we present two nonlinear programming models and methods for solving the resulting problems. One model involves minimizing total capacity costs such that plant congestion is controlled via upper limits on work-in-process. The other model involves minimizing a weighted sum of product lead times subject to budget constraints on capacity costs. We present solution methods for continuous and discrete capacity options and convex and nonconvex (e.g., economies of scale) capacity cost functions. We use branch and bound and outer approximation techniques to determine globally optimal solutions to the nonconvex problems. Computational testing of the algorithms is reported.
Nonlinear programming methods for capacity planning in a manufacturing system that consists of a set of machines or work stations producing multiple products are presented. The facility is modeled as an open network of queues where capacity at each work station in the system may be changed in each of a finite number of time periods. To determine the timing and size of capacity changes, two nonlinear programming models and methods for solving the resulting problems are presented. One model involves minimizing total capacity costs such that plant congestion is controlled via upper limits on work-in-process. The other model involves minimizing a weighted sum of product lead times subject to budget constraint on capacity costs. Solution methods are presented for continuous and discrete capacity options and convex and nonconvex (e.g., economies of scale) capacity cost functions. Branch and bound and outer approximation techniques to determine globally optimal solutions to the nonconvex problems are used. Computational testing of the algorithms is reported.
Author Côté, Murray J.
Bretthauer, Kurt M.
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Keywords Nonconvex optimization
Nonlinear programming
Branch and bound
Capacity planning
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Snippet In this paper, we present nonlinear programming methods for capacity planning in a manufacturing system that consists of a set of machines or work stations...
Nonlinear programming methods for capacity planning in a manufacturing system that consists of a set of machines or work stations producing multiple products...
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StartPage 167
SubjectTerms Algorithms
Branch and bound
Capacity planning
Cost control
Economies of scale
Manufacturing
Mathematical models
Nonconvex optimization
Nonlinear programming
Operations research
Optimization
Production capacity
Studies
Title Nonlinear programming for multiperiod capacity planning in a manufacturing system
URI https://dx.doi.org/10.1016/S0377-2217(96)00061-6
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