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Integration of a Heuristic Method into an ERP Software: A Successful Experience for a Dynamic Multi-item Lot Sizing Problem

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Advanced Business Analytics

Abstract

This chapter focuses on the successful collaboration between a research team at the Universidad de La Laguna (Tenerife, Spain) and the firm ITOP Management Consulting, which is a SAP partner mainly interested in developing solutions for SMEs. Company representatives came to our group to propose us both the design of an efficient algorithm to reduce inventory costs in companies, and its eventual integration as an add-on in SAP Business One platform. The problem arises in those firms with storage capacity that should schedule the replenishment orders for several items along a finite planning horizon. After 2 years, the algorithm was finally implemented in C# and .NET. A comprehensive computational experiment was carried out considering a wide range of random instances. The experimental results revealed that heuristic solutions were on average 5 % above the best solution provided by CPLEX optimizer.

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Acknowledgments

This work is partly supported by the former Spanish Ministry of Science and Innovation through the Research Project with reference MTM2010-18591 and by the new Spanish Ministry of Economy and Competitiveness through the Research Project with reference MTM2013-43396-P.

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Correspondence to José M. Gutiérrez .

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Gutiérrez, J.M., Colebrook, M., Rivero, C., Pestana, T. (2015). Integration of a Heuristic Method into an ERP Software: A Successful Experience for a Dynamic Multi-item Lot Sizing Problem. In: García Márquez, F., Lev, B. (eds) Advanced Business Analytics. Springer, Cham. https://doi.org/10.1007/978-3-319-11415-6_2

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