Person: Palma, Cristian D.
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Palma
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Cristian D.
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Publication Assessing the effectiveness of static heuristics for scheduling lumber orders in the sawmilling production process(2024) Vergara, Francisco P.; Palma, Cristian D.; Nelson, John D.Although optimization models can be used to plan the production process, in most cases static heuristics, such as earliest due date (E), longest processing time (L), and shortest processing time (S), are used because of their simplicity. This study aims to analyze the production cost of the static heuristics and to determine how this cost relates to the size of the production orders in the sawmilling industry. We set a planning problem with different orders and due dates and solved it using two cost-minimization models to compare their solutions. The first was a planning model (PL) where orders were split up into products demand by period, and the second, a planning scheduling (PS) where the sequence of processing orders based on static heuristics was assumed as known. In the latter, the minimum production cost for each static heuristic was found. In both models, the same resource constraints were assumed. The costs showed no significant changes based on order sizes. However, 0,5 % of orders were delayed using PS-E, and 17 % of orders were delayed using PL. PL was an efficient solution method when changing the orders´ size and when looking for the best static heuristic to process the orders. However, PS-E showed the ability to reduce the backlog close to zero while the PL backlog ratio was 17 %. No penalties were applied to backlogs due to their subjective nature; however, when shortages occurred, the demand was unmet or backlogged with substantial costs. Thus, in case the proposed method is adopted using a conservative backlog cost, a sawmill producing under the cut-to-order environment that produces 300000 m3 /year would reduce backlogged orders by 51000 m3. If the holding lumber cost is 2 $/m3, annual savings would be $408000.Publication Explicit Modeling of Multi-Product Customer Orders in a Multi-Period Production Planning Model(2024) Palma, Cristian D.; Vergara, Francisco P.; Muñoz-Herrera, SebastiánIn many industries, companies receive customer orders that include multiple products. To simplify the use of optimization models for planning purposes, these orders are broken down, and the quantities of each product are grouped with the same products from other orders to be completed in the same period. Consequently, traditional production planning models enforce minimum demand constraints by product and period rather than by individual orders. An important drawback of this aggregation procedure is that it requires a fixed order fulfillment period, potentially missing opportunities for more efficient resource use through early completion. This paper introduces a novel mathematical formulation that preserves the integrity of customer orders, allowing for early fulfillment when possible. We compare a traditional linear programming model with a new mixed-integer programming approach using a sawmill case study. Although more complex than the traditional model, the proposed formulation reduces costs by approximately 6% by enabling early order completion and offers greater flexibility and control over the production process. This approach leads to better resource utilization and more precise order management, presenting a valuable alternative to conventional production planning models.