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An Alternative Modeling for Lot-sizing and Scheduling Problem with a Decomposition Based Heuristic Algorithm  

Han, Junghee (College of Business Administration, Kangwon National Univeristy)
Lee, Youngho (Division of Information Management Engineering, College of Engineering, Korea University)
Kim, Seong-in (Division of Information Management Engineering, College of Engineering, Korea University)
Park, Eunkyung (Division of Information Management Engineering, College of Engineering, Korea University)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.33, no.3, 2007 , pp. 373-380 More about this Journal
Abstract
In this paper, we consider a new lot-sizing and scheduling problem (LSSP) that minimizes the sum of production cost, setup cost and inventory cost. Setup carry-over and overlapping as well as demand splitting are considered. Also, maximum number of setups for each time period is not limited. For this LSSP, we have formulated a mixed integer programming (MIP) model, of which the size does not increase even if we divide a time period into a number of micro time periods. Also, we have developed an efficient heuristic algorithm by combining decomposition scheme with local search procedure. Test results show that the developed heuristic algorithm finds good quality (in practice, even better) feasible solutions using far less computation time compared with the CPLEX, a competitive MIP solver.
Keywords
Lot-sizing and Scheduling; Mixed Integer Programming; Heuristic;
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