OR Seminar

Date: 23/05/2018

Hour: 14h30

Venue: Sala de Seminários, ed. VII

Tackling perishability in multi-level process industries

Bernardo Almada Lobo (INESC-TEC, Faculdade de Engenharia da Universidade do Porto)

Researchers have been trying to develop stronger formulations to lotsizing, as well as to incorporate real-world requirements from different applications. One of the most relevant features is perishability. Not accounting for product deterioration over time and/or shelf life can lead to significant spoilage costs. In practice it is necessary to trace the age of inventory over the planning horizon.

The classical multi-level lot-sizing problem formulations for process industries rarely address perishability issues, such as limited shelf lives of intermediate products. We start by extending standard models to incorporate perishability. We further demonstrate that with the goal of minimizing the total costs (inventory and/or setup), the production plans generated by classical models are often unfeasible under a perishable products setting. Finally, we provide quantitative insights on the importance of considering perishability for different production settings.