A planning model for just‐in‐time batch manufacturing

Addresses the problem of implementing just‐in‐time (JIT) principles in a processing shop organized in a batch manufacturing environment. The focus is on a processing shop separated from an assembly shop by a parts store. Presents a multi‐criteria variant of the capacitated lot‐sizing model. The approach involves a pre‐emptive priority for JIT processing schedules, and a secondary priority for desirable load profiles. Solution properties are derived and used to facilitate the solution process for both the primary and secondary criterion models. Load profiles are assessed in the context of capacity requirements planning as well as from the alternative viewpoint of providing feedback to capacity planning through a consideration of capacity cushions. At both planning levels the approach is shown to allow optimum resource utilization without violating JIT principles. Presents optimization procedures, including a heuristic with an analytic performance bound.