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Lagrangean relaxation based heuristics for lot sizing with setup times

Süral, Haldun and Denizel, Meltem and Van Wassenhove, Luk N. (2006) Lagrangean relaxation based heuristics for lot sizing with setup times. [Working Paper / Technical Report] Sabanci University ID:SU_FMAN_2006/0007

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Abstract

We consider a lot sizing problem with setup times where the objective is to minimize the total inventory carrying cost only. The demand is dynamic over time and there is a single resource of limited capacity. We show that the approaches implemented in the literature for more general versions of the problem do not perform well in this case. We examine the Lagrangean Relaxation (LR) of demand constraints in a strong reformulation of the problem. We then design a primal heuristic to generate upper bounds and combine it with the LR problem within a subgradient optimization procedure. We also develop a simple branch and bound heuristic to solve the problem. Computational results on test problems taken from the literature show that our subgradient optimization procedure produces consistently better solutions than the previously developed heuristics in the literature.

Item Type:Working Paper / Technical Report
Uncontrolled Keywords:Lot sizing; setup time; reformulation; lagrangean relaxation; heuristic; branch and bound.
Subjects:Q Science > Q Science (General)
T Technology > TS Manufactures > TS0155-194 Production management. Operations management
ID Code:805
Deposited By:Meltem Denizel
Deposited On:16 Feb 2007 02:00
Last Modified:04 Nov 2008 14:35

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