Document Type

Article

Publication Date

Summer 6-18-2016

Publication Title

Omega

Volume

68

First Page

85

Last Page

94

DOI

10.1016/j.omega.2016.06.005

Keywords

warehouse layout, capacitated lot-sizing, integer linear programming, Lagrangian heuristics, supply chain management

Abstract

We study a real-world production warehousing case, where the company always faces the challenge to find available space for their products and to manage the items in the warehouse. To resolve the problem, an integrated strategy that combines warehouse layout with the capacitated lot-sizing problem is presented, which have been traditionally treated separately in the existing literature. We develop a mixed integer linear programming model to formulate the integrated optimization problem with the objective of minimizing the total cost of production and warehouse operations. The problem with real data is a large-scale instance that is beyond the capability of optimization solvers. A novel Lagrangian relax-and-fix heuristic approach and its variants are proposed to solve the large-scale problem. The preliminary numerical results from the heuristic approaches are reported.

Funding Reference Number

NSERC RGPIN-2014-03594

Comments

Recommended Citation

Zhang, G., Nishi T, Turner S, Oga K, Li X (2017), An Integrated Strategy for a Production Planning and Warehouse Layout Problem: Modeling and Solution Approaches, Omega, 68, 85-94

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.