Multi-stage lot sizing in a serial production system

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Abstract
This paper summarizes the development and implementation of a large-scale, multi-objective, lot-sizing model for scheduling tablet pharmaceuticals in a serial production system. The model places multiple resource capacity constraints on production at various stages of the manufacturing process and explicitly considers resource set-up times to ensure the generation of a feasible schedule. The multi-period model uniquely allows for variable lot sizes by stage and by period, subject to integrality restrictions arising from the technological nature of the multi-stage process. An integer goal programming approach is used for determining non-dominated solutions to the multi-item problem. The implementation and utilization of the model by an international manufacturer of pharmaceuticals is described, and model results are presented and discussed.