Operations Research · 2003 · 204 citations · 23 references
ManagementIndustrial EngineeringOperations ManagementCapacity PlanningOptimizationProduction PlanningCombinatorial OptimizationInteger ProgrammingLot SizingResource AllocationMathematical Programming ModelsMixed-integer Lot Sizing ModelsMulti-item Lot SizingProduction Lot SizingProduction Planning Lot SizingRolling Horizon Lot SizingSetup Times
The paper proposes a time‑oriented decomposition heuristic to solve dynamic multi‑item multilevel lot‑sizing problems with constrained resources and setup times. The heuristic decomposes the problem into sequential submodels over rolling windows, each formulated as a mixed‑integer linear program using a Simple Plant Location representation and solved with standard MIP solvers while considering capacities over the full horizon. Computational experiments demonstrate that the heuristic yields higher solution quality than a well‑known special‑purpose heuristic.
In this paper a new time-oriented decomposition heuristic is proposed to solve the dynamic multi-item multilevel lot-sizing problem in general product structures with single and multiple constrained resources as well as setup times. While lot-sizing decisions are made sequentially within an internally rolling planning interval (or lot-sizing window), capacities are always considered over the entire planning horizon. For each submodel a model formulation based on the “Simple Plant Location” representation is developed. These mixed-integer linear submodels are solved by standard mathematical programming software even for relatively large test instances. Extensive computational tests show that the heuristic proposed provides a better solution quality than a well-known special purpose heuristic.
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Dynamic Version of the Economic Lot Size Model
Harvey M. Wagner, T. M. Whitin · Management Science · 2004 · 2.1K citations
Management, Industrial Engineering, Operations Management +17