MIP-based heuristics for multi-item capacitated lot-sizing problem with setup times and shortage costs
RAIRO - Operations Research - Recherche Opérationnelle, Volume 41 (2007) no. 2, pp. 171-192.

We address a multi-item capacitated lot-sizing problem with setup times that arises in real-world production planning contexts. Demand cannot be backlogged, but can be totally or partially lost. Safety stock is an objective to reach rather than an industrial constraint to respect. The problem is NP-hard. We propose mixed integer programming heuristics based on a planning horizon decomposition strategy to find a feasible solution. The planning horizon is partitioned into several sub-horizons over which a freezing or a relaxation strategy is applied. Some experimental results showing the effectiveness of the approach on real-world instances are presented. A sensitivity analysis on the parameters of the heuristics is reported.

DOI: 10.1051/ro:2007014
Classification: 90B30, 90C59
Keywords: lot-sizing, setup time, shortage cost, safety stock deficit, production planning, mixed integer programming, heuristic
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     title = {MIP-based heuristics for multi-item capacitated lot-sizing problem with setup times and shortage costs},
     journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
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Absi, Nabil; Kedad-Sidhoum, Safia. MIP-based heuristics for multi-item capacitated lot-sizing problem with setup times and shortage costs. RAIRO - Operations Research - Recherche Opérationnelle, Volume 41 (2007) no. 2, pp. 171-192. doi : 10.1051/ro:2007014. http://archive.numdam.org/articles/10.1051/ro:2007014/

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