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Mixed integer programming in production planning with backlogging and setup carryover : modeling and algorithms

Wu, Tao and Akartunali, Kerem and Song, Jie and Shi, Leyuan (2012) Mixed integer programming in production planning with backlogging and setup carryover : modeling and algorithms. Discrete Event Dynamic Systems. ISSN 0924-6703

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Abstract

This paper proposes a mixed integer programming formulation for modeling the capacitated multi-level lot sizing problem with both backlogging and setup carryover. Based on the model formulation, a progressive time-oriented decomposition heuristic framework is then proposed, where improvement and construction heuristics are effectively combined, therefore efficiently avoiding the weaknesses associated with the one-time decisions made by other classical time-oriented decomposition algorithms. Computational results show that the proposed optimization framework provides competitive solutions within a reasonable time.