Doctoral Dissertations

Date of Award

3-1988

Degree Type

Dissertation

Degree Name

Doctor of Philosophy

Major

Business Administration

Major Professor

Kenneth C. Gilbert

Committee Members

Ronald W. Boling, Oscar F. Fowler, James K. Ho

Abstract

In this dissertation we formulate and solve a class of production planning and scheduling problem. The problem is one of optimally specifying production levels for each product for each period of the planning horizon. The objective is to minimize sum of setup, regular time production, overtime production and inventory holding costs. The problem has been shown to be NP-hard in computational complexity.

We have formulated the production planning and scheduling problem as a variation of fixed charge transportation problem. We have developed an efficient heuristic and an exact solution algorithm based on this formulation.

The performance of the heuristic has been tested on 243 test problems. The problems differ with respect to (a) number of products, (b) number of periods, (c) seasonality of demand, (d) setup cost, and (e) tightness of capacity. The performance of the heuristic has been evaluated by comparing the heuristic solution value with a lower bound value.

The most significant effect on the difference between the heuristic solution and the lower bound is due to seasonality. The second most significant effect on the difference between the heuristic solution and the lower bound is due to setup cost. The effect of number of products, number of periods, and tightness of capacity on the difference between the heuristic solution and the lower bound seems to be insignificant.

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