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A Tabu-Search Heuristic for the Capacitated Lot-Sizing Problem with Set-up Carryover

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  • Mohan Gopalakrishnan

    ()
    (School of Management, Arizona State University West, MC 2451, PO Box 37100, Phoenix, Arizona 85069-7100)

  • Ke Ding

    ()
    (Prestige Telcomm. Ltd., 575 Boul. Morgon, Baie d'Urfe, PQ, Canada H9X 3T6)

  • Jean-Marie Bourjolly

    ()
    (Department of Decision Sciences ... MIS, Concordia University, 1455 de Maisonneuve Blvd. West Montreal, PQ, Canada H3G 1M8)

  • Srimathy Mohan

    ()
    (School of Management, Arizona State University West, MC 2451, PO Box 37100, Phoenix, Arizona 85069-7100)

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    Abstract

    This paper presents a tabu-search heuristic for the capacitated lot-sizing problem (CLSP) with set-up carryover. This production-planning problems allows multiple items to be produced within a time period, and setups for items to be carried over from one period to the next. Two interrelated decisions, sequencing and lot sizing, are present in this problem. Our tabu-search heuristic consists of five basic move types---three for the sequencing decisions and two for the lot-sizing decisions. We allow infeasible solutions to be generated at a penalty during the course of the search. We use several search strategies, such as dynamic tabu list, adaptive memory, and self-adjusting penalties, to strengthen our heuristic. We also propose a lower-bounding procedure to estimate the quality of our heuristic solution. We have also modified our heuristic to produce good solutions for the CLSP without set-up carryover. The computational study, conducted on a set of 540 test problems, indicates that on average our heuristic solutions are within 12% of a bound on optimality. In addition, for the set of test problems our results indicate an 8% reduction in total cost through set-up carryover.

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    File URL: http://dx.doi.org/10.1287/mnsc.47.6.851.9813
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    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 47 (2001)
    Issue (Month): 6 (June)
    Pages: 851-863

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    Handle: RePEc:inm:ormnsc:v:47:y:2001:i:6:p:851-863

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    Related research

    Keywords: Lot Sizing; Tabu Search; Set-up Carryover;

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    Cited by:
    1. Muller, Laurent Flindt & Spoorendonk, Simon & Pisinger, David, 2012. "A hybrid adaptive large neighborhood search heuristic for lot-sizing with setup times," European Journal of Operational Research, Elsevier, vol. 218(3), pages 614-623.
    2. Bouchriha, Hanen & Ouhimmou, Mustapha & D'Amours, Sophie, 2007. "Lot sizing problem on a paper machine under a cyclic production approach," International Journal of Production Economics, Elsevier, vol. 105(2), pages 318-328, February.
    3. Brahimi, Nadjib & Dauzere-Peres, Stephane & Najid, Najib M. & Nordli, Atle, 2006. "Single item lot sizing problems," European Journal of Operational Research, Elsevier, vol. 168(1), pages 1-16, January.
    4. Sahling, Florian & Buschkühl, Lisbeth & Tempelmeier, Horst & Helber, Stefan, 2008. "Solving a Multi-Level Capacitated Lot Sizing Problem with Multi-Period Setup Carry-Over via a Fix-and-Optimize Heuristic," Hannover Economic Papers (HEP) dp-400, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    5. Degraeve, Z. & Jans, R.F., 2003. "A New Dantzig-Wolfe Reformulation And Branch-And-Price Algorithm For The Capacitated Lot Sizing Problem With Set Up Times," ERIM Report Series Research in Management ERS-2003-010-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    6. Jans, Raf & Degraeve, Zeger, 2007. "Meta-heuristics for dynamic lot sizing: A review and comparison of solution approaches," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1855-1875, March.
    7. Kampf, M. & Kochel, P., 2006. "Simulation-based sequencing and lot size optimisation for a production-and-inventory system with multiple items," International Journal of Production Economics, Elsevier, vol. 104(1), pages 191-200, November.

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