Article ID: | iaor19962040 |
Country: | United Kingdom |
Volume: | 23 |
Issue: | 2 |
Start Page Number: | 131 |
End Page Number: | 140 |
Publication Date: | Feb 1996 |
Journal: | Computers and Operations Research |
Authors: | Morton Thomas E., Slotnick Susan A. |
Keywords: | heuristics |
One way of adjusting the workload in a manufacturing facility when available jobs exceed current capacity is to select a subset of jobs with the objective of maximizing total net profit for the firm, that is, revenue contributed by jobs processed less a penalty for lateness. This motivates us to formulate the objective function in terms of revenues minus costs, in order to reflect the trade-offs faced by the firm itself, which views costs mainly in the context of the reduction of its profits. The authors present a model that uses weighted lateness as a criterion for time-related penalties. Taking advantage of two special characteristics of the problem, they develop an optimal algorithm and two heuristic procedures. Computational results show that the myopic heuristic demonstrates near-optimal performance in a fraction of the processing time of the optimal benchmark.