A matheuristic approach for solving a simultaneous lot sizing and scheduling problem with client prioritization in tire industry

This paper introduces an integrated lot sizing and scheduling problem inspired from a real-world application in off-the-road tire industry. considers the assignment of different items on parallel machines with complex eligibility constraints within finite planning horizon. It also large panel specific such as: backordering, limited number setups, upstream resources saturation customers prioritization. A novel mixed integer formulation is proposed objective optimizing normalized criteria related to inventory service level performance. Based this mathematical formulation, problem-based matheuristic method that solves problems separately solve industrial case. computational study sensitivity analysis are carried out based data up 170 products, 70 unrelated 42 periods. The obtained results show effectiveness approach improving company's solution. Indeed, two most important KPIs for management have been optimized respectively 32% backorders 13% overstock. Moreover, time reduced significantly.