1;Foreword;5 2;Preface;7 3;Contents;9 4;List of Figures;13 5;List of Tables;16 6;Acronyms;18 7;1 Introduction;20 7.1;1.1 Definitions;22 7.2;1.2 Motivation;23 7.3;1.3 Goals;24 7.4;1.4 Outline;25 8;2 Production and Operations Management:Models and Algorithms;28 8.1;2.1 Dynamic Lot-Sizing;29 8.1.1;2.1.1 Classification of Models;30 8.1.1.1;2.1.1.1 Context of Model;30 8.1.1.2;2.1.1.2 Production System Characteristics;36 8.1.1.3;2.1.1.3 Modeling Technique;45 8.1.1.4;2.1.1.4 Decision Variables;49 8.1.1.5;2.1.1.5 Objective(s);50 8.1.2;2.1.2 The Wagner-Whitin Problem;52 8.1.3;2.1.3 The Capacitated Lot-Sizing Problem;53 8.1.4;2.1.4 The Capacitated Lot-Sizing Problemwith Sequence-Dependent Setups;55 8.1.5;2.1.5 The General Lot-Sizing and Scheduling Problem;58 8.1.6;2.1.6 The Multi-Level Capacitated Lot-Sizing Problem;61 8.1.7;2.1.7 The General Lot-Sizing and Scheduling Problemfor Multiple Production Stages;63 8.1.8;2.1.8 Comparison of Models;70 8.2;2.2 Solution Techniques for Dynamic Lot-Sizing;71 8.2.1;2.2.1 Overview;71 8.2.2;2.2.2 Valid Inequalities;73 8.2.3;2.2.3 Reformulations;74 8.2.4;2.2.4 Combinations of Heuristics and Exact Algorithms;76 8.2.5;2.2.5 Selected Approaches for Lot-Sizingwith Sequence-Dependent Setups;80 8.3;2.3 Transshipment Problems;81 8.3.1;2.3.1 Basics;81 8.3.2;2.3.2 Classification of Models;82 8.4;2.4 Solution Techniques for Transshipment Problems;85 8.4.1;2.4.1 Existing Approaches for Transshipment Problems;85 8.4.2;2.4.2 Simulation-Based Optimization;87 8.4.2.1;2.4.2.1 SBO Applications;88 8.4.2.2;2.4.2.2 Elements of an SBO Model;89 8.4.2.3;2.4.2.3 Classification of SBO Models;91 8.4.2.4;2.4.2.4 Specifics of SBO;92 8.4.2.5;2.4.2.5 Common Random Numbers;94 8.4.2.6;2.4.2.6 SBO Algorithms: Taxonomy and Selection Criteria;95 8.4.2.7;2.4.2.7 Direct Search: Pattern Search;96 8.4.3;2.4.3 Robust Optimization;97 9;3 Graphical Modeling of Substitutions and Flexible Bills-of-Materials;99 9.1;3.1 Applications;99 9.2;3.2 Modeling Approaches;102 9.2.1;3.2.1 Blending Models;103 9.2.2;3.2.2 Substitution Graphs;103 9.2.2.1;3.2.2.1 Substitution Structures;104 9.2.2.2;3.2.2.2 Demand Class-Specific Substitution Options;104 9.2.2.3;3.2.2.3 Modeling Transitive Substitution Options;105 9.2.2.4;3.2.2.4 Substitution Ratio;106 9.2.2.5;3.2.2.5 Substitution Triangle Inequality;107 9.2.3;3.2.3 Substitution Hypergraphs;107 9.2.3.1;3.2.3.1 Modeling Approach;107 9.2.3.2;3.2.3.2 Classification Criteria;110 9.2.4;3.2.4 Task-Oriented Modeling;112 9.2.5;3.2.5 Comparison of Modeling Approaches;115 9.3;3.3 Model Classification Criteria;116 9.3.1;3.3.1 Demand;116 9.3.1.1;3.3.1.1 Information and Activeness of Customers Regarding Substitutions;116 9.3.1.2;3.3.1.2 Substitution Acceptance;118 9.3.1.3;3.3.1.3 Linkage of Substitutions to Customer Orders;120 9.3.2;3.3.2 Model Context;120 9.3.2.1;3.3.2.1 Planning Level of Substitution;120 9.3.2.2;3.3.2.2 Substitute Sources;120 9.3.3;3.3.3 Substitution Characteristics;121 9.3.3.1;3.3.3.1 Substitute Preference Order;121 9.3.3.2;3.3.3.2 Partial vs. Exclusive Substitution;121 9.3.4;3.3.4 Conversions;121 9.3.4.1;3.3.4.1 Interpretations of Conversion Costs;121 9.3.4.2;3.3.4.2 Setup Times;122 9.3.4.3;3.3.4.3 Production and Conversion Capacities;122 9.3.4.4;3.3.4.4 Product Type Quantities;123 9.3.4.5;3.3.4.5 Time of Conversion;123 9.3.5;3.3.5 Production;124 9.3.5.1;3.3.5.1 Yield;124 9.4;3.4 Implementing Product Substitution;124 10;4 Literature Review;128 10.1;4.1 Assortment Problems;128 10.2;4.2 Lot-Sizing with Substitutions;129 10.2.1;4.2.1 The Requirements Planning Problem with Substitutions;130 10.2.2;4.2.2 Substitution with/without Conversion Problems;133 10.2.3;4.2.3 The Multi-level Lot-Sizing Problem with Flexible Production Sequences;134 10.2.3.1;4.2.3.1 Assumptions;135 10.2.3.2;4.2.3.2 Formulation;135 10.2.3.3;4.2.3.3 Transformation of RPS and SWCP into Special Case of MLFP;137 10.3;4.3 Related Aspects;138 11;5 Efficient Reformulations for Uncapacitated and Capacitated Lot-Sizing with Substitutions and Initi