Sequencing Mixed-ModelAssembly Lines to MinimizePart Inventory Cost

A mixed-model assembly line enables the joint production of different models of acommon base product in intermixed model sequence (lot size one). Previous approachesfor the short-term planning task of model sequencing either aim at minimizingwork overload (mixed-model sequencing and car sequencing) or leveling partusages (level scheduling). However, at many manufacturers parts are consolidatedby a third party logistics provider, who stocks Just-in-Time delivered parts in a consignmentwarehouse adjacent to the line. The manufacturer issues a complete cargocarrier (e.g. a euro-pallet) whenever his own intermediate storage of parts is depleted.Thus, the manufacturer aims at a model sequence which minimizes his own inventorycosts. This paper formalizes this novel model sequencing problem and describesdifferent heuristic and exact procedures. Furthermore, the solutions yielded by theseapproaches are compared to the traditional level scheduling...