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A lot-sizing problem in deliberated and controlled co-production systems

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  • Bahadır Pamuk
  • Semra Ağralı
  • Z. Caner Taşkın
  • Banu Kabakulak

Abstract

We consider an uncapacitated lot-sizing problem in co-production systems, in which it is possible to produce multiple items simultaneously in a single production run. Each product has a deterministic demand to be satisfied on time. The decision is to choose which items to co-produce and the amount of production throughout a predetermined planning horizon. We show that the lot-sizing problem with co-production is strongly NP-Hard. Then, we develop various Mixed-Integer Linear Programming (MILP) formulations of the problem and show that LP relaxations of all MILPs are equal. We develop a separation algorithm based on a set of valid inequalities, lower bounds based on a dynamic lot-sizing relaxation of our problem and a constructive heuristic that is used to obtain an initial solution for the solver, which form the basis of our proposed Branch & Cut algorithm for the problem. We test our models and algorithms on different data sets and provide the results.

Suggested Citation

  • Bahadır Pamuk & Semra Ağralı & Z. Caner Taşkın & Banu Kabakulak, 2022. "A lot-sizing problem in deliberated and controlled co-production systems," IISE Transactions, Taylor & Francis Journals, vol. 54(10), pages 950-962, July.
    • Handle: RePEc:taf:uiiexx:v:54:y:2022:i:10:p:950-962
    DOI: 10.1080/24725854.2021.2022250
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