engleski

Lot Sizing Problem with Equipment Replacement

Each of N products is to be processed on a single machine in order to satisfy known demands in each of T periods. The object is to minimize the sum of the costs of production, storage and set-up. This problem is known as a Production Lot Sizing Problem. On the other hand, an Equipment Replacement Problem concers a machine which deteriorates with age and the decision to replace it. We assume that we must own such a machine during each of T periods and that the utility of operating a machine for one period is known quantity and depends on the age of the machine. The object is to decide when to replace the machine in order to maximize the utility of operating it. Combining these two problems, we define a new multicriteria mixed 0-1 integer programming problem called a Lot Sizing Problem with Equipment Replacement. The object is to minimize the costs and maximize the utility of operating the machine. This paper studies the properties of efficient point set for this new problem.

Production lot sizing problem; equipment replacement problem; lot sizing problem with equipment replacement; multicriteria mixed 0-1 integer programming

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