Abstract
In 2006, Ford Motor Company committed to restructure the $1.5 billion ACH interiors business. This extensive undertaking required a complete re-engineering of the supply footprint of 42 high-volume product lines over 26 major manufacturing processes and more than 50 potential supplier sites. To enable data-driven decision making, we developed a decision support system (DSS) that could quickly yield a variety of solutions for different business scenarios. To drive this DSS, we developed a non-standard mathematical model for the assignment problem and a novel practical approach to solve the resulting large-scale mixed-integer nonlinear program (MINLP). In this paper, we present the MINLP and describe how we reformulated it to remove the nonlinearity in the objective function, while still capturing the supplier facility cost as a function of the supplier’s utilization. We also describe our algorithm and decoupling method that scale well with the problem size and avoid the nonlinearity in the constraints. Finally, we provide a computational example to demonstrate the algorithm’s functionality.
AMS(MOS) subject classifications. Primary 90C11, 90C90.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
C. Floudas, Nonlinear and Mixed-Integer Optimization: Fundamentals and Applications, Oxford University Press, Inc., 1995.
J. Nocedal and S. Wright, Numerical Optimization, Springer, New York, NY, 1999.
ILOG, ILOG OPL-CPLEX Development System, http://www.ilog.com/products/oplstudio/, 2008.
Ford Motor Company, 2006. Ford Accelerates “Way Forward.” http://media.ford.com/article_display.cfm?article_id=24261. Retrieved June 23, 2009.
I. Nowak, Relaxation and Decomposition Methods for Mixed Integer Nonlinear Programming, Birkh¨auser Verlag, 2005.
L. Wolsey, Integer Programming, John Wiley & Sons, Inc., 1998.
E. Klampfl, Y. Fradkin, C. McDaniel, and M. Wolcott, Ford Optimizes Urgent Sourcing Decisions in a Distressed Supplier Environment, Interfaces, Special Section: The Daniel H. Wagner Prize for Excellence in Operations Research Practice, Editor: Joseph H. Discenza, September-October 2009.
R. Rardin, 2000. Optimization in Operations Research. Prentice Hall, Inc., Upper Saddle River, NJ.
J. Deshpande, 2004. Mathematical Analysis and Applications: An Introduction. Alpha Science Int’l Ltd., Harrow, UK.
Sharon Silke Carty, USA TODAY, March 27, 2008. Many auto parts suppliers failed to widen base http://www.usatoday.com/money/industries/manufacturing/2008-03-26-auto-parts-suppliers_N.htm. Retrieved November 20, 2008.
AutomotiveWorld.com, February 14, 2008. US: Blue Water files for bankruptcy http://www.automotiveworld.com/news/powertrain/66356-us-blue-water-files-for-bankruptcy. Retrieved November 20, 2008.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2012 Springer Science+Business Media, LLC
About this paper
Cite this paper
Klampfl, E., Fradkin, Y. (2012). MINLP Application for ACH Interiors Restructuring. In: Lee, J., Leyffer, S. (eds) Mixed Integer Nonlinear Programming. The IMA Volumes in Mathematics and its Applications, vol 154. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-1927-3_21
Download citation
DOI: https://doi.org/10.1007/978-1-4614-1927-3_21
Published:
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4614-1926-6
Online ISBN: 978-1-4614-1927-3
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)