An algorithm for production planning in a flexible production system

In this paper, we consider the problem of determining the production rate, production batch size, and production sequence when production rate, setup cost, and unit processing cost are sequence-dependent. Using a standard lot sizing model with backorder, a tabu search algorithm for solving this problem is proposed. The algorithm is tested on some random test problems and its performance is compared with random sequencing. Computational results show that the proposed algorithm is very efficient.