An efficient model for multifamily lot-sizing and scheduling: application to a real life problem

A multifamily lot-sizing and scheduling model is developed for a production environment where the production line capacity is a critical factor. Since the capacity is limited, judicious selections of family cycle times and which products of a family should be produced in a given cycle are critical in avoiding shortages. The model can be implemented using available spreadsheet programs and can be easily understood by production planners. The model was applied to a real life problem at a leading manufacturer of hygienic products. With respect to their current practice, the model resulted in a solution that was uniform in application and reduced total costs by 16%. The model was also compared against Brown's model in an uncapacitated environment. Results were encouraging, as the model performed as well as Brown's model and even better in some cases. The proposed model has an advantage over Brown's since it results in common cycle times for all product families making scheduling and controlling easier.