In this paper, we study scheduling problems that have batching considerations, and with sequence-dependent setup times for single machine and job shop flow planning. An important focus is the explicit treatment of setup times (costs), missed due dates (tardiness) and wastage as important cost components that impacts the direct and indirect cost. Indirect cost reflects the true cost of an urgent order that caused the machine setup to be re-arranged that can influence business decision on how to priced such order and how on a recurring basis might affect the bottom line profit and lost.
[Allahverdi et al., 2006] found that the majority of the earlier papers assumed that the setup time (cost) is negligible or part of the job processing time (cost). This assumption simplifies the analysis however it adversely affects the solution quality. However, there is an increased interest in scheduling problems involving setup times as many recognised that there are tremendous savings when setup times/costs are explicitly incorporated in scheduling decision in various real world industrial environments.
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