A heuristic algorithm for master production scheduling problem with controllable processing times and scenario-based demands

<p>Master production scheduling (MPS) is widely used by manufacturing industries in order to handle the production scheduling decisions in the production planning hierarchy. The classical approach to MPS assumes infinite capacity, fixed (i.e. non-controllable) processing times and a single pre-determined scenario for the demand forecasts. However, the deterministic optimisation approaches are sometimes not suitable for addressing the real-world problems with high uncertainty and flexibility. Accordingly, in this paper, we propose a new practical model for designing an optimal MPS for the environments in which processing times may be controllable by allocating resources such as facilities, energy or manpower. Due to the NP-hardness of our model, an efficient heuristic algorithm using local search technique and theory of constraints is developed and analysed. The computational results especially for large-sized test problems show that the average optimality gap of proposed algorithm is four times lower than that of exact solution using GAMS while it consumes also significantly smaller run times. Also, the analysis of computational results confirms that considering the controllable processing times may improve the solution space and help to more efficiently utilise the available resources. According to the model structure and performance of the algorithm, it may be proposed for solving large and complex real-world problems particularly the machining and steel industries.