Integrated JIT Lot-Splitting Model with Setup Time Reduction for Different Delivery Policy using PSO Algorithm

This article develops an integrated JIT lot-splitting model for a single supplier and a single buyer. In this model we consider reduction of setup time, and the optimal lot size are obtained due to reduced setup time in the context of joint optimization for both buyer and supplier, under deterministic condition with a single product. Two cases are discussed: Single Delivery (SD) case, and Multiple Delivery (MD) case. These two cases are investigated before and after setup time reduction. The proposed model determines the optimal order quantity (Q*), optimal rate of setup reduction (R*), and the optimal number of deliveries (N*) -just for multiple deliveries case- on the joint total cost for both buyer and supplier. For optimizing our model two algorithm including Gradient Search and Particle Swarm Optimization (PSO), which is a population-based search algorithm, are applied. Finally numerical example and sensitivity analysis are provided to compare the aggregate total cost for two cases and effectiveness of the considered algorithm. The results show that which policy for lot-sizing is leading to less total cost.