Spring 2002 IE 514 1

Topic 29
Paced Assembly Systems
Spring 2002 IE 514 2
Paced Assembly Systems
Conveyor moves jobs at fixed speeds
Fixed distance between jobs
Spacing proportional to processing time
No bypass
Unit cycle time
time between two successive jobs
Spring 2002 IE 514 3
Grouping and Spacing
Attributes and characteristics of each job
color, options, destination of cars
Changeover cost
Group operations with high changeover
Certain long operations
Space evenly over the sequence
Capacity constrained operations (criticality index)
Spring 2002 IE 514 4
Objectives
Minimize total setup cost
Meet due dates for make-to-order jobs
Total weighted tardiness
Spacing of capacity constrained
operations
P
i
(l) = penalty for working on two jobs l
positions apart in ith workstation
Regular rate of material consumption
Spring 2002 IE 514 5
Grouping and Spacing
Heuristic
Determine the total number of jobs to be
scheduled
Group jobs with high setup cost
operations
Order each subgroup accounting for
shipping dates
Space jobs within subgroups accounting
for capacity constrained operations
Spring 2002 IE 514 6
Example
Single machine with 10 jobs
Each job has a unit processing time
Setup cost

If there is a penalty cost
1 1 k j jk
a a c =
2 2 k j
a a =
) 0 , 3 max( ) (
2
l l P =
Spring 2002 IE 514 7
Example Data
Job 1 2 3 4 5 6 7 8 9 10
j
a
1
1 1 1 3 3 3 5 5 5 5
j
a
2
0 1 1 0 1 1 1 0 0 0
j
d

2

6

j
w
0 4 0 0 0 0 4 0 0 0
Spring 2002 IE 514 8
Grouping
Group A: Jobs 1,2, and 3
Group B: Jobs 4,5, and 6
Group C: Jobs 7,8,9, and 19

Best order: A B C
Spring 2002 IE 514 9
Grouped Jobs
A B C
Due
date
Job 1 2 3 4 5 6 7 8 9 10
j
a
1
1 1 1 3 3 3 5 5 5 5
j
a
2
0 1 1 0 1 1 1 0 0 0
j
d

2

6

j
w
0 4 0 0 0 0 4 0 0 0
Order A C B
Spring 2002 IE 514 10
Capacity Constrained
Operations
A C B
Job 2 1 3 8 7 9 10 5 4 6
j
a
1
1 1 1 5 5 5 5 3 3 3
j
a
2
1 0 1 0 1 0 0 1 0 1
j
d
2

6

j
w
4 0 0 0 4 0 0 0 0 0
Spring 2002 IE 514 11
Topic 31
Lot Sizing
Spring 2002 IE 514 12
Lot Sizing
Domain:
large number of identical jobs
setup time/cost significant
setup may be sequence dependent
Terminology
jobs = items
sequence of identical jobs = run
Spring 2002 IE 514 13
Applications
Continuous manufacturing
chemical, paper, pharmaceutical, FMCG etc.

Spring 2002 IE 514 14
Objective
Minimize total cost
setup cost
inventory holding cost

Trade-off

Cyclic schedules
Spring 2002 IE 514 15
Scheduling Decisions
Determine the length of runs
lot sizes

Determine the order of the runs
sequence to minimize setup cost

Economic Lot Scheduling Problem (ELSP)
Spring 2002 IE 514 16
Overview
One type of item/one machine

Several types of items/one machine
rotation schedules
arbitrary schedules

Generalizations to multiple machines
Spring 2002 IE 514 17
Problem Description
Single machine
Single item type
Production rate q/time
Demand rate g/time

Problem: determine the run length to
minimize cost per unit time

Spring 2002 IE 514 18
Minimize Cost per unit time
Let x denote the cycle time
Demand over a cycle = gx
Length of production run needed = gx/q


Inventory
Time
x
q
gx g q ) (
x
q
x g
gx
|
|
.
|

\
|
=
2
2
1
AREA
Spring 2002 IE 514 19
Costs
Average setup cost c/x
Average inventory holding cost


Total cost
|
|
.
|

\
|

q
x g
gx h
2
2
1
x
c
q
x g
gx h +
|
|
.
|

\
|

2
2
1
Per item holding cost
Setup cost per run
Spring 2002 IE 514 20
Optimizing Cost
Derivative



Solve
2
2
1
2
1
2
1
x
c
q
g
hg
x
c
q
x g
gx h
dx
d

|
|
.
|

\
|
= +
|
|
.
|

\
|

0 1
2
1
2
=
|
|
.
|

\
|

x
c
q
g
hg
Spring 2002 IE 514 21
Optimal Cycle Time
2
1
2
1
x
c
q
g
hg =
|
|
.
|

\
|

) (
2
2
g q hg
qc
x

=
) (
2
g q hg
qc
x

=
Spring 2002 IE 514 22
Optimal Lot Size
Total production


When unlimited production capabilities



Economic Order Quantity (EOQ)
) (
2
g q h
qcg
gx

=
hg
c
g q h
qcg
q
2
) (
2

Spring 2002 IE 514 23
Setup Time
Setup time s

If s s x(1-) above optimal

Otherwise cycle length

is optimal

=
1
s
x
n utilizatio = =
q
g

Spring 2002 IE 514 24

Numerical Example
Production q = 90/month
Demand g = 50/month
Setup cost c = $2000
Holding cost h = $20/item
3
4
36
40 10
3600
) 50 90 ( 50 20
2000 90 2
= =

=


= x
Spring 2002 IE 514 25
Optimal Schedule
Cycle time = 3 months

Lot size = 150 items

Idle time = 3(1-5/9)=1.33 months
Spring 2002 IE 514 26
Example: Setup Times
Now assume setup time

If < 1.33 months then 3 month cycle
still optimal

Otherwise the cycle time must be
longer

=
1
s
x
Spring 2002 IE 514 27
Inventory Levels
Inventory
Month
120
1 2 3 4 5 6
Inventory
Month
180
1 2 3 4 5 6
Spring 2002 IE 514 28
Example
A plant needs to produce 10000 car chassis
per year
The plant capacity is 25000 chassis/year
Each chassis costs $2000
It costs $200 to set up a production run
Holding cost is $500/chassis/year

What is the optimal lot size?
Spring 2002 IE 514 29
Solution
The optimal lot size is




which means we should make

runs in a year.
5 . 115
75
1000000
) 10 25 ( 5
100 200 25 2
) 1000 25000 ( 500
10000 200 25000 2
) (
2
= =

=
g q h
qcg
gx
6 . 86
5 . 115
10000
=
Spring 2002 IE 514 30
Discussion
Notice that the preceding result does not
tell us how to produce those chassis in
detail

Lot size models are used for planning

Time horizon usually a few months (short
range planning)
Spring 2002 IE 514 31
Topic 33
Lot Sizing with Multiple
Items
Spring 2002 IE 514 32
Multiple Items
Only considered one item type before

Now assume n different items
Demand rate for item j is g
j

Production rate of item j is q
j

Setup independent of the sequence

Rotation schedule: single run of each item
Spring 2002 IE 514 33
Scheduling Decision
Cycle length determines the run length for
each item

Only need to determine the cycle length x

Expression for total cost/time unit
Spring 2002 IE 514 34
Inventory Holding Cost
Average inventory level for the j-th item



Average total cost
|
|
.
|

\
|

j
j
j
q
x g
x g
2
2
1

=
|
|
.
|

\
|
+
|
|
.
|

\
|

n
j
j
j
j
j j
x
c
q
x g
x g h
1
2
2
1
Spring 2002 IE 514 35
Optimal Lot-Size
Solve as before



Limiting case (infinite production rate)

=

=
|
|
.
|

\
|

=
n
j
j
n
j
j
j j j j
c
q
g q g h
x
1
1
1
2
) (

=

=
|
|
.
|

\
|
=
n
j
j
n
j
j j
c
g h
x
1
1
1
2
Spring 2002 IE 514 36
Example
Items 1 2 3 4
_q
j
400 400 500 400
_g
j
50 50 60 60
_h
j
20 20 30 70
_c
j
2000 2500 800 0
Spring 2002 IE 514 37
Solution
( ) months 24 . 1 5353 . 1 5300 3452
5300
8
340 42
10
440 18
4
350 10
5300
8
340 42
10
440 18
8
350 10
2
2
) (
1
1
1
1
1
1
= = =
|
.
|

\
|

+

=
|
.
|

\
|

+

=
|
|
.
|

\
|

=

=

n
j
j
n
j
j
j j j j
c
q
g q g h
x
Spring 2002 IE 514 38
Solution
The total average cost per time unit is



How can we do better than this?
8554 $ 2213 1627 2559 2155 = + + +
Spring 2002 IE 514 39
Topic 34
Lot Sizing with Setup
Spring 2002 IE 514 40
Setup Times
With sequence independent setup costs
and no setup times the sequence within
each lot does not matter

Only a lot sizing problem

Even with setup times, if they are not
job dependent then still only lot sizing
Spring 2002 IE 514 41
Job Independent Setup
Times
If sum of setup times < idle time then our
optimal cycle length remains optimal

Otherwise we take it as small as possible

=
=

=
n
j
j
n
j
j
s
x
1
1
1
Spring 2002 IE 514 42
Job Dependent Setup
Times
Now there is a sequencing problem
Objective: minimize sum of setup times

Equivalent to the Traveling Salesman
Problem (TSP)
A salesman must visit n cities exactly once with the
objective of minimizing the total travel time, starting
and ending in the same city
Spring 2002 IE 514 43
Equivalence to TSP
Item = city
Travel time = setup time

TSP is NP-hard

If best sequence has sum of setup times < idle
time optimal lot size and sequence
Spring 2002 IE 514 44
Long setup
If sum of setups > idle time, then the
optimal schedule has the property:
Each machine is either producing or being
setup for production

An extremely difficult problem with
arbitrary setup times
Spring 2002 IE 514 45
Arbitrary Schedules
Sometimes a rotation schedule does not make
sense
(remember problem with no setup cost)
For example, we might want to allow a cycle
1,4,2,4,3,4 if item 4 has no setup cost

No efficient algorithm exists
Spring 2002 IE 514 46
Problem Formulation
Assume sequence-independent setup
Formulate as a nonlinear program
runs production between meet is demand
cycle over the met demand
s.t.
COST min min
sizes lot sequences
Spring 2002 IE 514 47
Notation
Setup cost and setup times

All possible sequences

Item k produces in l-th position

Setup time s
l
, run time t
l
, and idle time
u
l
. ,
k jk k jk
s s c c = =
{ } n h j j j S
h
> = : ) ,..., , (
2 1
k j
l
q q q
l
= =
Spring 2002 IE 514 48
Inventory Cost
Let x be the cycle time
Let v be the time between production of k


Total inventory cost for k is
k
l
k
l
l l
g
t q
g
t q
v = =
( )
2
) (
2
1
l
l
l
l l l
t
g
q
g q h
|
|
.
|

\
|

Spring 2002 IE 514 49

Mathematical Program
|
|
.
|

\
|
+
|
|
.
|

\
|

= =
h
l
h
l
l l
l
l
l l l
u t x
S
c t
g
q
g q h
x
l l
1 1
2
, ,
) ( ) (
2
1 1
min min

=
e
e
= + +
=
|
|
.
|

\
|
= + +
= =
h
j
j j j
l
L j
l
l
j j j
I j
k
j
k
x u s t
n k t
g
q
u s t
n k x g t q
l
k
1
) (
,..., 1 , ) (
,..., 1 ,
Subject to
Spring 2002 IE 514 50
Two Problems
Master problem
finds the best sequence

Subproblem
finds the best production times, idle times,
and cycle length

Key idea: think of them seperately
Spring 2002 IE 514 51
Subproblem
|
|
.
|

\
|
+
|
|
.
|

\
|

= =
h
l
h
l
l l
l
l
l l l
u t x
c t
g
q
g q h
x
l l
1 1
2
, ,
) ( ) (
2
1 1
min

=
e
= + +
=
|
|
.
|

\
|
= + +
h
j
j j j
l
L j
l
l
j j j
x u s t
n k t
g
q
u s t
l
1
) (
,..., 1 , ) (
Subject to
Spring 2002 IE 514 52
Master Problem
Sequencing complicated
Heuristic approach
Frequency Fixing and Sequencing (FFS)
Focus on how often to produce each item
Computing relative frequencies
Adjusting relative frequencies
Sequencing
Spring 2002 IE 514 53
Computing Relative
Frequencies
Let y
k
denote the number of times item k
is produced in a cycle
We will
simplify the objective function by substituting


drop the second constraint
k k k k k
g q h a ) (
2
1
=
Spring 2002 IE 514 54
Mathematical Program

= =
+
n
k
k k
n
k
k
k
x y
x
y c
y
x a
k
1 1
,
min
s

=
1
1
n
k
k k
x
y s
Subject to
Though y
k
is integer, we solve by relaxing integer
Conditions, then do adjustment
Lagrange function
optimization
Spring 2002 IE 514 55

= =
+
n
k
k k
n
k
k
k
x y x
y c
y
x a
k
1 1
, ,
min

)) 1 ( (
1
+

=
n
k
k k
x
y s
Spring 2002 IE 514 56
Solution
Using Lagrangean multiplier:


Adjust cycle length for frequencies
Idle times = 0
No idle times, must satisfy
k k
k
k
s c
a
x y
+
=

=
|
|
.
|

\
|
+

=
1
1
n
k
k k
k
k
s c
a
s
Spring 2002 IE 514 57
Adjusting the Frequencies
Adjust the frequencies with cycle time
such that frequencies are
integer
powers of 2

New frequencies and run times
' '
,
k k
t y
Roundys power of 2
approximation
Easier to do scheduling over the cycle
once the frequency are identified
Production spread evenly over cycle and
thus inventory will not fluctuate over time
Easier to implement in real life
cost within 6% of optimal cost

Spring 2002 IE 514 58
Spring 2002 IE 514 59
Sequencing
Variation of LPT
Calculate

Consider the problem with machines
in parallel and jobs of length
Item k with frequency has to must
have jobs placed on machines that are
equally spaced
{ }
' '
1
'
max
,..., max
n
y y y =
'
max
y
'
k
t
'
k
y
'
k
y
'
k
y
Get approx equal spacing of
production runs of each item

Spring 2002 IE 514 60
List pairs in decreasing order

In case frequencies are same for a set of jobs list them in
decreasing order of their lot process time.

Schedule one at a time considering spacing restriction so that
the total processing time assigned to every machine is
minimized.

After all the pairs in the list are assigned the sequence is
concatenated. Machine 1 followed by machine 2 followed by
3 till end to obtain a single sequence.
) , (
' '
k k
t y
FFS examples
1 machine, 4 items:

Items 1 2 3 4
q
j
400 400 500 400
g
j
50 50 60 60
h
j
20 20 30 70
c
j
2000 2500 800 0
s
j
0.5 0.2 0.1 0.2
7.4.1: without setup times, x=2
7.4.2.: with setup times, x=3
Spring 2002 IE 514 62
Topic 35
Lot Sizing on Multiple
Machines
Spring 2002 IE 514 63
Multiple Machines
So far, all models single machine models
Extensions to multiple machines
parallel machines
flow shop
flexible flow shop
Spring 2002 IE 514 64
Parallel Machines
Have m identical machines in parallel
Setup cost only
Item process on only one machine

Assume
rotation schedule
equal cycle for all machines
Spring 2002 IE 514 65
Decision Variables
Same as previous multi-item problem

Addition: assignment of items to
machines

Objective: balance the load

Heuristic: LPT with
k
k
k
q
g
=
Spring 2002 IE 514 66
Different Cycle Lengths
Allow different cycle lengths for machines
Intuition: should be able to reduce cost

Objective: assign items to machines to
balance the load
Complication: should not assign items that
favor short cycle to the same machine as
items that favor long cycle
Spring 2002 IE 514 67
Heuristic Balancing
Compute cycle length for each item
Rank in decreasing order
Allocation jobs sequentially to the
machines until capacity of each machine
is reached
Adjust balance
Spring 2002 IE 514 68
Flow Shop
Machines configured in series
Assume no setup time
Assume production rate of each item is
identical for every machine
Can be synchronized
Reduces to single machine problem

=
=
m
i
ik k
c c
1