Order consolidation for hierarchical product lines

Abstract

We consider the batch production of hierarchical product lines in raw material industry where the whole or parts of multiple customer orders may be consolidated and processed in the same batch if their product specifications are compatible. The objective of the problem is to find maximum possible number of batches completely filled up to their capacity. The compatibility relationship among product specifications is represented by a graph called the compatibility graph. If the compatibility graph is an arbitrary graph, the problem is proven to be NP-hard and belongs to Max SNP-hard class. We develop an optimum algorithm for an important subclass of the problem where the graph is a quasi-threshold graph which in fact is the case for producing hierarchical product lines that are often found in raw materials industry.