An algorithm using Lagrangean relaxation and decomposition for solving a capacitated lot-sizing problem

Chun-Hung Cheng, Manohar S. Madan, Angappa Gunasekaran and Ka-Yun Yip

International Journal of Mathematics in Operational Research, 2010, vol. 2, issue 2, 205-232

Abstract: In this research, we formulate and solve a type of the capacitated lot-sizing (CLS) problem. This problem is commonly found in many manufacturing settings. Unlike a typical formulation, our formulation explicitly considers different types of production capacities such as regular time and overtime. We develop a heuristic based on Lagrangean relaxation with a decomposition scheme to solve this CLS problem. Computational results show that our algorithm gives very good results while comparing to lower bounds.

Keywords: production planning; capacitated lot-sizing; CLS problem; Lagrangean relaxation; decomposition schemes; sub-gradient optimisation; manufacturing industry. (search for similar items in EconPapers)
Date: 2010
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