Multi-Item Production Planning: Theory, Computation and Practice

Lead Research Organisation: University of Strathclyde
Department Name: Management Science

Abstract

Production planning problems arise naturally in the context of the manufacturing companies, where decisions are to be made regarding when to produce and what to produce while considering interactions between different time periods (for example through inventories) and between different items (for example through shared machine/labor capacities). Due to its high savings potential and being such a key component of the manufacturing decision making process, production planning has been an active area of research for more than 50 years. Moreover, in the current economic climate and global competitive environment, UK manufacturing industries face the crucial choice of turning these challenges into opportunities. Although a wide body of academic and practical research is devoted to the topic, realistic industrial problems remain very challenging even with the tremendous advancements in the computer technologies, and therefore novel approaches are needed to maximize the potential benefits attainable.

Mathematical models are instrumental to study production planning problems, where decisions and limitations of the real system can be represented by a mathematical system of variables and equations. Although a significant proportion of the previous research was devoted to mathematical studies and attained important results, almost all of these previous studies are focused on non-realistic and simplistic problems. The first part of this project aims to address this gap, developing novel mathematical theory for subproblems present in realistic problems.

Recent computational technologies such as highly parallel computer infrastructures and GPU computing present immense opportunities for tackling problems that could not be attempted before. Moreover, such technologies are becoming available to the general public including small companies much faster and cheaper than in the past. Therefore, the second part of this project aims to develop computational models (based on the theoretical results of the previous part) appropriate for such infrastructures and test these extensively for various production planning problems, including some obtained from the industry.

Finally, the project will address specific production planning issues of the food and drink industry, which is the largest manufacturing sector in the UK with over 500,000 people employed. Identified as a key growth sector in Scotland by the "Government Economic Strategy", food and drink industry has been able to maintain the growth of exports even in the challenging economic climate, and has significant growth potential due to emerging markets. Production planning in this important industry has been neglected in the past, and this project will address this by working with an industrial partner in this area, developing customized tools for their challenges with the help of the theoretical and computational results of the previous parts.

Planned Impact

The project has two main direct beneficiaries, who are the two industrial partners of the project. The impact on both of these beneficiaries will be primarily economic, as discussed in detail individually next. The plan for facilitation of the impact to each of these industrial partners is discussed in detail in the 'Pathways to Impact' document.

The first industrial partner, a dairy farmer co-operative in the UK, has been facing various issues in their production planning. This project will address these issues by academic expertise applied first-hand, where the project will improve the practice of production planning in the partner company. Ultimately, the final product to be used by the industrial partner is a customized software package developed with the knowledge obtained from this project and taking into account all the observations made in the production facilities, which will have a significant impact to the partner's operations in the coming years and increase its competitiveness with higher efficiencies in the production.

The second industrial partner, a production planning and scheduling software company in the UK, aims to protect its leader position by following the latest technologies and having a major release every year. To support this aim, this project will expose the latest mathematical and computational research to the partner, where all the key deliverables will be shared directly with the company. This will impact significantly the next generation software designed by the industrial partner and this early exposition will provide them an invaluable competitive edge.

In addition to these direct beneficiaries, other UK companies with production planning needs, in particular in food and drink, are seen as longer term and indirect beneficiaries of this project. As discussed in detail in the 'Pathways to Impact' document, various events such as workshops and training courses will be used to reach out to these beneficiaries, so that economic benefits can be realized with first-hand access to the knowledge generated through this project.

Finally, it is also worth noting that the project will impact the staff working in this project significantly, in particular the PDRA, giving them crucial personal development opportunities. These benefits include various technical and generic skills/experience, in particular various mathematical skills, computational skills such as HPC usage and software development experience, and access to real-world problems and industrial perspectives. This is a long-term impact indispensable to their future careers.
 
Description The project has extensively studied mathematical properties of some challenging production planning problems, and established novel theory that has also the potential to expand to some other common mathematical models that address industrial problems. These theoretical results also successfully implemented in order to ensure potential practical use.

The award objectives were generally met (and indeed gone beyond for the theoretical part, where some surprises actually are leading us now to extend the results)
Exploitation Route Though most results are mathematical and hence limited accessibility to practical users such as those from manufacturing industries, there is potential to implement those tools and techniques for practitioners as black-box tools, such as by optimization software companies (IBM Ilog, FICO Xpress, ...)
Sectors Manufacturing, including Industrial Biotechology

 
Title Lot-Sizing Data Generator for Problems with Zero Setup Times 
Description This is a FICO Xpress mosel file that generates random data for multi-item production planning problems with zero setup times. Researchers are welcome to use this generator to create random problem instances. 
Type Of Material Database/Collection of data 
Provided To Others? No  
Impact Not recorded 
 
Title Supplementary data for: "Valid inequalities for two-period relaxations of big-bucket lot-sizing problems" 
Description The online supplement provides some key rigorous and lengthy proofs that were not included in the paper entitled "Valid Inequalities for Two Period Relaxations of Big-Bucket Lot-Sizing Problems: Zero Setup Case". 
Type Of Material Database/Collection of data 
Year Produced 2018 
Provided To Others? Yes  
 
Description Ioannis Fragkos 
Organisation Erasmus University Rotterdam
Country Netherlands 
Sector Academic/University 
PI Contribution Our contributions was primarily developing mathematical theory to address some challenging production planning problems.
Collaborator Contribution Dr Dragkos primarily contributed to the computational implementation and software development of the project, which is currently ongoing for more sophisticated development.
Impact This collaboration has resulted in a journal paper and three conference proceedings, as listed below. There is also currently a working paper with a target submission date in summer 2018. 1) Local cuts and two-period convex hull closures for big-bucket lot-sizing problems Akartunali, K., Fragkos, I., Miller, A. J. & Wu, T. 31 Oct 2016 In : INFORMS Journal on Computing. 28, 4, p. 766-780 15 p. 2) A theoretical study of two-period relaxations for lot-sizing problems with big-bucket capacities Akartunali, K., Doostmohammadi, M. & Fragkos, I., International Workshop on Lot-Sizing, 24 Aug 2015 p. 105-109 5 p. 3) A computational study of the local cuts from two-period convex hull closures for big-bucket lot-sizing problems Fragkos, I. & Akartunali, K., International Workshop on Lot-Sizing, Aug 2014 p. 41-45 5 p. 4) A theoretical and computational study of two-period relaxations for lot-sizing problems with big bucket capacities Doostmohammadi, M. & Akartunali, K., International Workshop on Lot-Sizing, Aug 2014 p. 52-55 4 p.
Start Year 2014
 
Description Invited talk at Resource Efficiency Industry Advisory Group (IAG) 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach Regional
Primary Audience Industry/Business
Results and Impact I was an invited speaker in the Resource Efficiency Industry Advisory Group (IAG) on 16th June 2016 to present some of the practical results of this EPSRC project. The invited talks were followed up by roundtable discussions. The Resource Efficiency Industry Advisory Group for Food & Drink (REIAG) was set up in 2012 as a result of a partnership between Interface Food & Drink, Zero Waste Scotland and the Food and Drink Federation (FDF) Scotland. The aim was to raise awareness and promote opportunities related to environmental sustainability and to stimulate innovation in the food and drink industry.
Year(s) Of Engagement Activity 2016
URL http://www.interface-online.org.uk/case-studies/resource-efficiency-industry-advisory-group-food-dri...
 
Description Plenary Speaker at 18th ONPCE conference in Brazil 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Postgraduate students
Results and Impact I was invited as one of the two plenary speakers at the 18th ONPCE (National Workshop on Problems of Cutting and Packing, Planning and Production Scheduling), which took place place 7-8 Nov 2017 at Universidade Federal de São Paulo (UNIFESP), in São José dos Campos, Brazil. My plenary talk entitled "A Review of Lot-Sizing: Heuristics, Reformulations and Decompositions", which was partly presenting results of this EPSRC project, engaged a mix of audience over 200 people including academics, postgraduate students and professional practitioners.
Year(s) Of Engagement Activity 2017
 
Description Production Planning: From Decompositions to Robust Reformulations 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Professional Practitioners
Results and Impact Invited seminar at Dept. of Management Science, Lancaster University
Year(s) Of Engagement Activity 2018