Sustainability in a lot-sizing and scheduling problem with delivery time window and sequence-dependent setup cost consideration

Sustainability in manufacturing operations scheduling is a necessary requirement for companies. Although this subject has attracted much attention, joint decisions of lot-sizing and scheduling with sustainability consideration have not been completely examined in the literature. In this regard, we aim to present a bi-objective model to solve a lot-sizing and scheduling problem simultaneously that would maximize the total profit and minimize CO2 emissions. Also, an augmented epsilon-constraint method is utilized to transform the model into a single-objective formulation. The proposed model considers Earliness/Tardiness penalties with the delivery time window and sequence-dependent setup costs. Moreover, the model is implemented in a case study of steel company and practical conclusions and managerial insights are reported. Results show that the proposed model is useful for production managers in order to schedule their operations.