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Optimization Approaches for Supply Chain Planning: A Focus on Lot-Sizing Problems

This research explores complex supply chain planning activities focusing on lot-sizing challenges in production and distribution. It examines the interplay of procurement, production, and demand fulfillment, emphasizing the optimization of setup and inventory holding costs. Utilizing mixed-integer linear programming, the study presents models for both single and multiple products over various planning periods. It also addresses sequence-dependent changeovers and incorporates ongoing work in batch scheduling, simulation, and multi-agent systems, contributing to advancements in resource management and logistical efficiency.

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Optimization Approaches for Supply Chain Planning: A Focus on Lot-Sizing Problems

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  1. Activités de recherche au LGI Céline Gicquel

  2. Supply chain planning matrix Procurement Production Distribution Sales long term Supply Network Design mid term Master Planning Demand Planning short term ProductionPlanning DistributionPlanning Materials Requirements Planning Transport Planning Demand Fulfilment Scheduling

  3. Short-term production planning Customer demand Resource Raw materials A production resource with a limited capacity and significant startup operations Finished products

  4. 1 2 3 4 5 6 7 8 9 10 50 50 50 Setup costs=500€; Inventory holding costs=1420€ Basic lot-sizing problem • Simple example • 1 single product, 10 planning periods • Production capacity: 50 units/period • Setup costs = 500€ ; Inventory holding costs=2€/unit/period • Demand: • Objective 1: minimize setup costs

  5. 1 2 3 4 5 6 7 8 9 10 30 20 50 50 Setup costs=1500€; Inventory holding costs=100€ Basic lot-sizing problem • Simple example • 1 single product, 10 planning periods • Production capacity: 50 units/period • Setup costs = 500€ ; Inventory holding costs=2€/unit/period • Demand: • Objective 2: minimize inventory holding costs

  6. 1 2 3 4 5 6 7 8 9 10 50 50 50 Basic lot-sizing problem • Simple example • 1 single product, 10 planning periods • Production capacity: 50 units/period • Setup costs = 500€ ; Inventory holding costs=2€/unit/period • Demand: • Objective 3: minimize setup and inv. holding costs Setup costs=1000€; Inventory holding costs=220€

  7. PhD thesis • Studied extensions • Multiple products • Multiple resources • Sequence-dependent changeovers • Difficult deterministic optimization problems • Solution approach • Mixed integer linear programming • Tight formulations + solver

  8. On-going work • Lot-sizing with parallel resources • Valid inequalities • Heterogenous resources • Collaboration with Pr Wolsey • European project CAP-SCHED • Batch scheduling • Simulation+optimization • Multi-agent system

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