Production planning and component supply-pricing planning can create many challenges for system designers and this IE Decisions Systems Engineering Fall ’16 Seminar Series hosted by industrial engineering Assistant Professor Jorge Sefair will discuss algorithm development strategies to address those challenges.
Production Planning with Price-Dependent Supply Capacity
Presented by Joseph Geunes, professor, University of Arkansas in Fayetteville, Arkansas
Friday, October 28, 2016
Brickyard Engineering (BYENG) 210, Tempe campus [map]
We consider a production planning problem in which a producer procures an input component for production by offering a price to suppliers. The available supply quantity for the production input depends on the price the producer offers, and this supply level constrains production output. The producer seeks to meet a set of demands over a finite horizon at a minimum cost, including component procurement costs. We model the problem as a discrete-time production and component supply-pricing planning problem with nonstationary costs, demands, and component supply levels. This leads to a two-level lot-sizing problem with an objective function that is neither concave nor convex. Although the most general version of the problem is NP-hard, we provide polynomial-time algorithms for two special cases of the model under particular assumptions on the cost structure. We then apply the resulting algorithms heuristically to the more general problem version and provide computational results that demonstrate the high performance quality of the resulting heuristic solution methods.
Joseph Geunes is a Professor and John and Mary Lib White Systems Integration Chair in Industrial Engineering at the University of Arkansas in Fayetteville, Arkansas. Prior to joining the University of Arkansas in 2016, he was a faculty member in Industrial and Systems Engineering for 18 years at the University of Florida. Professor Geunes’s research focuses on production and logistics planning, supply chain management, and operations research. He received his PhD in 1999 from Penn State, and was designated as a Fellow of the Institute of Industrial Engineers in 2015. He has co-authored more than 60 scholarly articles published in peer-reviewed journals including Operations Research, Mathematical Programming, M&SOM, Naval Research Logistics, and IIE Transactions. In addition, he has co-edited four books, authored two books, and is currently a Department Editor for IISE Transactions and Area Editor for Omega.