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Dynamic order acceptance and scheduling problem with sequence-dependent setup time

delete2015-02-03
delete31
PRE
AI
L
Lei Xu
Q
Qian Wang *
黄四民 cover
黄四民 (Simin Huang)
DOI:10.1080/00207543.2015.1005768delete
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Abstract

Abstract

En 中文
This paper studies the order acceptance and scheduling problem under a single machine environment when the orders come stochastically during the planning horizon and a sequence-dependent setup time is required between the processing of different types of orders. The objective is to maximise the expected revenue subject to the due date constraints. The problem is formulated as a stochastic dynamic programming model. A rule based on the opportunity cost of the remaining system capacity for the current system state is proposed to make the order acceptance decisions. The remaining system capacity is estimated by a heuristic which generates a good schedule for the accepted orders. Its opportunity cost is estimated by both mathematical programme and greedy heuristic. Computational experiments show that the profit generated by the integrated dynamic programming decision model is much higher than the widely used first-come-first-accept policy in industries and the benefit increases with the length of planning horizon, the arrival rate and the length of lead time. Acceptance decision based on mathematical programming outperforms greedy heuristic by about 7% and its computational time is short. It also shows that the quality of the solutions generated by the opportunity cost based order acceptance rule is satisfactory.
Keywords:
scheduling
order acceptance
sequence-dependent setup
stochastic demand
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Journal

International Journal of Production Research cover
International Journal of Production Research
IF:
7.3
Papers:
1.1W
Citations:
3.7W

Organization

T
tsinghua university
Scholars:
11.8W
Papers: 10.0W
Citations: 137
C
chinese academy of sciences
Scholars:
56.4W
Papers: 44.9W
Citations: 704