The multi-item capacitated lot-sizing problem with setup times and shortage costs

We address a multi-item capacitated lot-sizing problem with setup times and shortage costs that arises in real-world production planning problems. Demand cannot be backlogged, but can be totally or partially lost. The problem is NP-hard. A mixed integer mathematical formulation is presented. Our approach in this paper is to propose some classes of valid inequalities based on a generalization of Miller et al. [26] and Marchand and Wolsey [24] results. We also describe fast combinatorial separation algorithms for these new inequalities. We use them in a branch-and-cut framework to solve the problem. Some experimental results showing the effectiveness of the approach are reported.

• Type: Journal
• Year: 2008
• Where: EOR
• Authors: Nabil Absi, Safia Kedad-Sidhoum
• Keywords: Capacitated Lot-sizing Problem, EOR 2008, EOR 2010, Integer Mathematical Formulation, Miller Et Al