Decision Sciences Journal

Volume 27, Number 2
Spring 1996

Lot Splitting in Stochastic Flow Shop and Job Shop Environments

Timothy L. Smunt
Babcock Graduate School of Management, Wake Forest University, Box 7659 Reynolda Station, Winston-Salem, NC 27109

Arnold H. Buss
Operations Research Department, Naval Postgraduate School, Monterey, CA 93943-5000

Dean H. Kropp
John M. Olin School of Business, Washington University, One Brookings Drive, St. Louis, MO 63130

Abstract

In recent years many firms have been implementing small lot size production. Lot splitting breaks large orders into smaller transfer lots and offers the ability to move parts more quickly through the production process. This paper extends the deterministic studies by investigating various lot splitting policies in both stochastic job shop and stochastic flow shop settings using performance measures of mean flow time and the standard deviation of flow time. Using a computer simulation experiment, we found that in stochastic dynamic job shops, the number of lot splits is more important than the exact form of splitting. However, when optimal job sizes are determined for each scenario, we found a few circumstances where the implementation of a small initial split, called a "flag," can provide measurable improvement in flow time performance. Interestingly, the vast majority of previous research indicates that methods other than equal lot splitting typically improves makespan performance. The earlier research, however, has been set in the static, deterministic flow shop environment. Thus, our results are of practical interest since they show that the specific method of lot splitting is important in only a small set of realistic environments while the choice of an appropriate number of splits is typically more important.

Subject Areas

Job Shop Scheduling, Lot Splitting, Machine Scheduling and Sequencing, Process Design, and Simulation.