A Tabu-Search Heuristic for the Capacitated Lot-Sizing Problem with Set-up Carryover

Mohan Gopalakrishnan (), Ke Ding (), Jean-Marie Bourjolly () and Srimathy Mohan ()
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Mohan Gopalakrishnan: School of Management, Arizona State University West, MC 2451, PO Box 37100, Phoenix, Arizona 85069-7100
Ke Ding: Prestige Telcomm. Ltd., 575 Boul. Morgon, Baie d'Urfe, PQ, Canada H9X 3T6
Jean-Marie Bourjolly: Department of Decision Sciences ... MIS, Concordia University, 1455 de Maisonneuve Blvd. West Montreal, PQ, Canada H3G 1M8
Srimathy Mohan: School of Management, Arizona State University West, MC 2451, PO Box 37100, Phoenix, Arizona 85069-7100

Management Science, 2001, vol. 47, issue 6, 851-863

Abstract: This paper presents a tabu-search heuristic for the capacitated lot-sizing problem (CLSP) with set-up carryover. This production-planning problems allows multiple items to be produced within a time period, and setups for items to be carried over from one period to the next. Two interrelated decisions, sequencing and lot sizing, are present in this problem. Our tabu-search heuristic consists of five basic move types---three for the sequencing decisions and two for the lot-sizing decisions. We allow infeasible solutions to be generated at a penalty during the course of the search. We use several search strategies, such as dynamic tabu list, adaptive memory, and self-adjusting penalties, to strengthen our heuristic. We also propose a lower-bounding procedure to estimate the quality of our heuristic solution. We have also modified our heuristic to produce good solutions for the CLSP without set-up carryover. The computational study, conducted on a set of 540 test problems, indicates that on average our heuristic solutions are within 12% of a bound on optimality. In addition, for the set of test problems our results indicate an 8% reduction in total cost through set-up carryover.

Keywords: Lot Sizing; Tabu Search; Set-up Carryover (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (17)

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