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An MIP-based interval heuristic for the capacitated multi-level lot-sizing problem with setup times

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  • Tao Wu
  • Leyuan Shi
  • Jie Song

Abstract

This paper considers the capacitated multi-level lot-sizing problem with setup times, a class of difficult problems often faced in practical production planning settings. In the literature, relax-and-fix is a technique commonly applied to solve this problem due to the fact that setup decisions in later periods of the planning horizon are sensitive to setup decisions in the early periods but not vice versa. However, the weakness of this method is that setup decisions are optimized only on a small subset of periods in each iteration, and setup decisions fixed in early iterations might adversely affect setup decisions in later periods. In order to avoid these weaknesses, this paper proposes an extended relax-and-fix based heuristic that systematically uses domain knowledge derived from several strategies of relax-and-fix and a linear programming relaxation technique. Computational results show that the proposed heuristic is superior to other well-known approaches on solution qualities, in particular on hard test instances. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Tao Wu & Leyuan Shi & Jie Song, 2012. "An MIP-based interval heuristic for the capacitated multi-level lot-sizing problem with setup times," Annals of Operations Research, Springer, vol. 196(1), pages 635-650, July.
    • Handle: RePEc:spr:annopr:v:196:y:2012:i:1:p:635-650:10.1007/s10479-011-1026-9
    DOI: 10.1007/s10479-011-1026-9
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    References listed on IDEAS

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    1. Stadtler, Hartmut, 2003. "Multilevel lot sizing with setup times and multiple constrained resources: Internally rolling schedules with lot-sizing windows," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 20204, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
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    5. BARANY, Imre & VAN ROY, Tony & WOLSEY, Laurence A., 1984. "Uncapacitated lot-sizing: the convex hull of solutions," LIDAM Reprints CORE 605, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. BELVAUX, Gaëtan & WOLSEY, Laurence A., 2000. "bc-prod: A specialized branch-and-cut system for lot-sizing problems," LIDAM Reprints CORE 1455, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Merce, C. & Fontan, G., 2003. "MIP-based heuristics for capacitated lotsizing problems," International Journal of Production Economics, Elsevier, vol. 85(1), pages 97-111, July.
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    11. Wu, Tao & Shi, Leyuan & Geunes, Joseph & AkartunalI, Kerem, 2011. "An optimization framework for solving capacitated multi-level lot-sizing problems with backlogging," European Journal of Operational Research, Elsevier, vol. 214(2), pages 428-441, October.
    12. Suerie, Christopher & Stadtler, Hartmut, 2003. "The Capacitated lot-sizing problem with linked lot sizes," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 20206, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    13. AkartunalI, Kerem & Miller, Andrew J., 2009. "A heuristic approach for big bucket multi-level production planning problems," European Journal of Operational Research, Elsevier, vol. 193(2), pages 396-411, March.
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    Cited by:

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    2. Marcos Mansano Furlan & Maristela Oliveira Santos, 2017. "BFO: a hybrid bees algorithm for the multi-level capacitated lot-sizing problem," Journal of Intelligent Manufacturing, Springer, vol. 28(4), pages 929-944, April.
    3. Absi, Nabil & van den Heuvel, Wilco, 2019. "Worst case analysis of Relax and Fix heuristics for lot-sizing problems," European Journal of Operational Research, Elsevier, vol. 279(2), pages 449-458.
    4. Dziuba, Daryna & Almeder, Christian, 2023. "New construction heuristic for capacitated lot sizing problems," European Journal of Operational Research, Elsevier, vol. 311(3), pages 906-920.
    5. Wolfgang Albrecht & Martin Steinrücke, 2020. "Continuous-time scheduling of production, distribution and sales in photovoltaic supply chains with declining prices," Flexible Services and Manufacturing Journal, Springer, vol. 32(3), pages 629-667, September.
    6. Tao Wu, 2022. "Predictive Search for Capacitated Multi-Item Lot Sizing Problems," INFORMS Journal on Computing, INFORMS, vol. 34(1), pages 385-406, January.
    7. Nabajyoti Bhattacharjee & Nabendu Sen, 2023. "A Sustainable Inventory Model to Study the Mixing and Bottling Plant of Single Item for Cost Minimization," SN Operations Research Forum, Springer, vol. 4(4), pages 1-18, December.

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