Journal
COMPUTERS & OPERATIONS RESEARCH
Volume 36, Issue 9, Pages 2546-2553Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.cor.2008.10.009
Keywords
Lot sizing; MIP; Decomposition; MLCLSP-L
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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 products 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. (C) 2008 Elsevier Ltd. All rights reserved.
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