Optimal planning of a multi-station system with sojourn time constraints

Singer, M., Donoso, P., Noguer J.L., 2005. Annals of Operations Research 138 pp. 203 – 222.

This paper studies a dynamic production system where multiple products must visit stations where inventories are constrained by maximum and minimum sojourn times with neither negative flow nor backlog being allowed. A resource availability constraint limits the aggregate throughput of the stations. The objective is to minimize the sum of flow and inventory cost. The problem is broken down into several single-product serial systems that serve as subroutines of a Lagrangian relaxation routine. This model is implemented in a spreadsheet so that it can be used by the officials of a Chilean institution for planning the operations and defining the optimal allocation of resources.

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