Minimizing Expected Cycle Time of Stochastic Customer Orders Through Bounded Multi-Fidelity Simulations.

This paper considers the scheduling of stochastic customer orders to minimize expected cycle time. Customer orders dynamically arrive at a machine station, and each order consists of multiple product types. Random workloads are required by each product type, and the workloads are assigned to a set of unrelated parallel machines in the station to be processed. The objective is to obtain the minimal long-run expected order cycle time through proper workload assignments. In view of the difficulty in evaluating the objective function, this paper models the targeted problem as a simulation optimization problem and proposes to solve it under the multifidelity model framework. To improve the efficiency in evaluating candidate solutions, a low-fidelity model is constructed to select solutions with better performances for high-fidelity simulations. The effectiveness of this low-fidelity model is demonstrated through a series of theoretical evidences. A simulation optimization algorithm, named Bound-Multi-fidelity Optimization with Ordinal Transformation and Optimal Sampling Bound-(MO2TOS), is developed by taking advantage of the properties of the low-fidelity model. Numerical experiments are conducted to evaluate the performance of the proposed algorithm against three other well-known simulation optimization algorithms in the literature. Results indicate that the Bound-MO2TOS outperforms all the other tested algorithms, and its performance is robust against changes in problem scale. Note to Practitioners—Customer order scheduling models have wide applications in industries where every single order may contain multiple product types and the entire order requires one shipment delivery. In many applications, such as pigments dyes manufacturing, auto repair, and grocery, consideration of customer orders rather than individual jobs is often preferred. Given the stochastic nature and the synchronization constraints of the problem, a multifidelity simulation algorithm named Bound-Multi-fidelity Optimization with Ordinal Transformation and Optimal Sampling Bound-(MO2TOS) is proposed. Experimental results suggest that the proposed algorithm outperforms three other popular simulation optimization algorithms under a variety of scenarios. It is admitted that further improvement can be made in refining the computation resource distribution process of Bound-MO2TOS. In the future research, such an improvement will be more thoroughly elaborated so that practitioners can utilize it to coordinate their productions better. [ABSTRACT FROM AUTHOR]