A modified tabu search algorithm for cost-based job shop problem

Abstract

In this paper, a cost-based job shop problem (JIT-JSP) is proposed to model the multi-order processing procedure in a just-in-time (JIT) environment. The objective of JIT-JSP is to minimize three costs: work-in-process holding cost of half-finished orders, inventory holding cost of finished orders and backorder cost of unfulfilled orders. A modified tabu search (MTS) method is developed to improve the schedule quality by searching the neighbourhood of a feasible schedule iteratively. The MTS method is comprised of three components that help to ensure a more effective searching procedure: neighbourhood structure, memory structure and filter structure. Computational results show that the MTS method significantly improves the initial schedule generated by an arbitrarily selected dispatching rule. © 2010 Operational Research Society Ltd. All rights reserved.