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A Lagrangean Relaxation Approach for Very-Large-Scale Capacitated Lot-Sizing

Author

Listed:
  • Moustapha Diaby

    (College of Business, Arizona State University, Tempe, Arizona 85287)

  • Harish C. Bahl

    (College of Business, California State University, Chico, California 95929-0011)

  • Mark H. Karwan

    (Department of Industrial Engineering, State University of New York at Buffalo, Buffalo, New York 14260)

  • Stanley Zionts

    (School of Management, State University of New York at Buffalo, Buffalo, New York 14260)

Abstract

In this paper, we develop a Lagrangean relaxation-based heuristic procedure to generate near-optimal solutions to very-large-scale capacitated lot-sizing problems (CLSP) with setup times and limited overtime. Our computational results show that large problems involving several thousand products and several thousand 0/1 integer variables can be solved in a reasonable amount of computer time to within one percent of their optimal solution. The proposed procedure is general enough to be applied directly or with slight modification to real-life production problems.

Suggested Citation

  • Moustapha Diaby & Harish C. Bahl & Mark H. Karwan & Stanley Zionts, 1992. "A Lagrangean Relaxation Approach for Very-Large-Scale Capacitated Lot-Sizing," Management Science, INFORMS, vol. 38(9), pages 1329-1340, September.
    • Handle: RePEc:inm:ormnsc:v:38:y:1992:i:9:p:1329-1340
    DOI: 10.1287/mnsc.38.9.1329
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