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MIP-based heuristics for multi-item capacitated lot-sizing problem with setup times and shortage costs

Published online by Cambridge University Press:  15 June 2007

Nabil Absi  and
Safia Kedad-Sidhoum
Nabil Absi
Affiliation:
Laboratoire LIP6, 4 place Jussieu, 75 252 Paris Cedex 05, France Dynasys S.A., 10 Avenue Pierre Mendes France, 67 300 Schiltigheim, France ; Safia.Kedad-Sidhoum@lip6.fr
Safia Kedad-Sidhoum
Affiliation:
Laboratoire LIP6, 4 place Jussieu, 75 252 Paris Cedex 05, France
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Abstract

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.

Keywords

Lot-sizingsetup timeshortage costsafety stock deficitproduction planningmixed integer programmingheuristic
Type
Research Article
Information
RAIRO - Operations Research , Volume 41 , Issue 2: ROADEF 05 , April 2007 , pp. 171 - 192
Copyright
© EDP Sciences, ROADEF, SMAI, 2007

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