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Solving a Multi-Level Capacitated Lot Sizing Problem with Multi-Period Setup Carry-Over via a Fix-and-Optimize Heuristic

Author

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  • Sahling, Florian
  • Buschkühl, Lisbeth
  • Tempelmeier, Horst
  • Helber, Stefan

Abstract

This paper presents a new algorithm for the dynamic Multi-Level Capacitated Lot Sizing Problem with Setup Carry-Overs (MLCLSP-L). The MLCLSP-L is a big-bucket model that allows the production of any number of products within a period, but it incorporates partial sequencing of the production orders in the sense that the first and the last product produced in a period are determined by the model. We solve a model which is applicable to general bill-of-material structures and which includes minimum lead times of one period and multi-period setup carry-overs. Our algorithm solves a series of mixed-integer linear programs in an iterative so-called Fix-and-Optimize approach. In each instance of these mixed-integer linear programs a large number of binary setup variables is fixed whereas only a small subset of these variables is optimized, together with the complete set of the inventory and lot size variables. A numerical study shows that the algorithm provides high-quality results and that the computational effort is moderate.

Suggested Citation

  • 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.
    • Handle: RePEc:han:dpaper:dp-400
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    References listed on IDEAS

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    Cited by:

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    2. Liang, Zhe & He, Yan & Wu, Tao & Zhang, Canrong, 2015. "An informative column generation and decomposition method for a production planning and facility location problem," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 88-96.
    3. Camargo, Victor C.B. & Toledo, Franklina M.B. & Almada-Lobo, Bernardo, 2014. "HOPS – Hamming-Oriented Partition Search for production planning in the spinning industry," European Journal of Operational Research, Elsevier, vol. 234(1), pages 266-277.
    4. 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.
    5. Sahling, Florian & Hahn, Gerd J., 2019. "Dynamic lot sizing in biopharmaceutical manufacturing," International Journal of Production Economics, Elsevier, vol. 207(C), pages 96-106.
    6. Guimarães, Luis & Klabjan, Diego & Almada-Lobo, Bernardo, 2013. "Pricing, relaxing and fixing under lot sizing and scheduling," European Journal of Operational Research, Elsevier, vol. 230(2), pages 399-411.
    7. Li, Yantong & Chu, Feng & Chu, Chengbin & Zhu, Zhanguo, 2019. "An efficient three-level heuristic for the large-scaled multi-product production routing problem with outsourcing," European Journal of Operational Research, Elsevier, vol. 272(3), pages 914-927.
    8. Lang, Jan Christian & Shen, Zuo-Jun Max, 2011. "Fix-and-optimize heuristics for capacitated lot-sizing with sequence-dependent setups and substitutions," European Journal of Operational Research, Elsevier, vol. 214(3), pages 595-605, November.

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    More about this item

    Keywords

    Lot Sizing; MIP; Decomposition; MLCLSP-L; 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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