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A Fix-and-Optimize Approach for the Multi-Level Capacitated Lot Sizing Problems

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  • Helber, Stefan
  • Sahling, Florian

Abstract

This paper presents an optimization-based solution approach for the dynamic multi-level capacitated lot sizing problem (MLCLSP) with positive lead times. The key idea is to solve a series of mixed-integer programs in an iterative fix-and-optimize algorithm. Each of these programs is optimized over all real-valued variables, but only a small subset of binary setup variables. The remaining binary setup variables are tentatively fixed to values determined in previous iterations. The resulting algorithm is transparent, flexible, accurate and relatively fast. Its solution quality outperforms those of the approaches by Tempelmeier/Derstroff and by Stadtler.

Suggested Citation

  • Helber, Stefan & Sahling, Florian, 2008. "A Fix-and-Optimize Approach for the Multi-Level Capacitated Lot Sizing Problems," Hannover Economic Papers (HEP) dp-393, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    • Handle: RePEc:han:dpaper:dp-393
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    Keywords

    multi-level lot sizing; MLCLSP; lead times; Fix-and-Optimize heuristic.;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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