Classification and literature review of integrated lot-sizing and cutting stock problems

Abstract

The aim of this paper is to classify the literature related to the integration between the lot-sizing and cutting stock problem. A deterministic mathematical model, that considers multiple dimensions of integration and comprises several aspects found in practice, is proposed. This model is used as a framework to classify the current literature in this field. The main classification of the literature is organized around two types of integration. In a planning horizon which consists of multiple periods, the inventory provides a link between the periods. This integration across time periods constitutes the first type of integration. The proposed model also considers the production of different types of items at three different levels: objects are fabricated or purchased and next cut into pieces which are then assembled into final products. The integration between these three production levels constitutes the second type of integration. The classification indicates that, even though many papers in the current literature analyze an integrated lot-sizing and cutting stock problem, they vary widely with respect to the level of integration on the time and production level dimensions. Furthermore, our analysis indicates that the current models also consider varying assumptions with respect to the inventory, the production capacities and the setups. Finally, we point out some possible interesting areas for future research.