Lagrangean relaxation based heuristics for lot sizing with setup times

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Sural, Haldun and Denizel, Meltem and Van Wassenhove, Luk N. (2009) Lagrangean relaxation based heuristics for lot sizing with setup times. European Journal of Operational Research, 194 (1). pp. 51-63. ISSN 0377-2217

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Official URL: http://dx.doi.org/10.1016/j.ejor.2007.11.052


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 relaxation procedure produces consistently better solutions than the previously developed heuristics in the literature.

Item Type:Article
Uncontrolled Keywords:Inventory; Setup time; Reformulation; Lagrangean relaxation; Heuristic
Subjects:Q Science > Q Science (General)
T Technology > TS Manufactures > TS0155-194 Production management. Operations management
ID Code:9603
Deposited By:Meltem Denizel
Deposited On:25 Oct 2008 14:27
Last Modified:25 May 2011 14:10

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