Research On Product Family Lot Sizing Problem Based On Assemble To Order (ATO) Mode

This paper abstracts two kinds of problems prevail in manufactureindustry based on thorough study of the MTO&MTS enterprises. One ismixed product structure, there exists many kinds of raw materials as well asthe final products causing large numbers of stock; the other is a mass inproduct planning management, which lacks of coordination and can’t allocateenterprise resources efficiently. To solve these problems, this paperestablishes a flexible assemble to order (ATO) framework for the originalMTO&MTS enterprises.Based on the analysis of some main production modes, a flexible ATOframework with the product family view is put forward, which hopefully isbetter suit for the enterprises to produce a large variety of products with smallbatches. Then, the discrete lot sizing model with consideration of familyproduct changeover cost (Item Setup Cost), which is typically NP-hard，isestablished. While the exact solution is hard to achieve, a heuristic algorithmis given to achieve an optimal solution. Finally, this study uses the actualproduction data of an enterprise as an example to verify the algorithmoptimization, and discusses the standard steps to synchronize the algorithminto the ERP/MRP system.