Multi-Level Inventory Matching And Order Planning Under The Hybrid Make-To-Order/Make-To-Stock Production Environment For Steel Plants Via Particle Swarm Optimization

Keywords

Inventory matching; Make To Order (MTO); Make To Stock (MTS); Order planning; Particle Swarm Optimization (PSO); Scheduling

Abstract

This paper proposes a nonlinear integer programming model which co-optimizes the multi-level inventory matching and order planning for steel plants while combining Make-To-Order and Make-To-Stock policies. The model considers order planning and inventory matching of both finished and unfinished products. It combines multiple objectives, i.e., cost of earliness/tardiness penalty, tardiness penalty within delivery time window, production cost, inventory matching cost, and order cancelation penalty. This paper also proposes an improved Particle Swarm Optimization (PSO) method, where strategies to repair infeasible solutions and inventory-rematching scheme are introduced. Parameters of PSO and the rematching scheme are also analyzed. Three sets of real data from a steel manufacturing company are used to perform computational experiments for PSO, local search, and improved PSO. Numerical results show the validity of the model and efficacy of the improved PSO method.

Publication Date

6-4-2015

Publication Title

Computers and Industrial Engineering

Volume

87

Number of Pages

238-249

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/j.cie.2015.05.001

Socpus ID

84930935580 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/84930935580

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