A comparison of mixed integer programming formulations of the capacitated lot-sizing problem

Hakan F. Karagul, Donald P. Warsing, Thom J. Hodgson, Maaz S. Kapadia and Reha Uzsoy

International Journal of Production Research, 2018, vol. 56, issue 23, 7064-7084

Abstract: We propose a novel mixed integer programming formulation for the capacitated lot-sizing problem with set-up times and set-up carryover. We compare our formulation to two earlier formulations, the Classical and Modified formulations, and a more recent formulation due to Suerie and Stadtler. Extensive computational experiments show that our formulation consistently outperforms the Classical and Modified formulations in terms of CPU time and solution quality. It is competitive with the Suerie–Stadtler (S&S) formulation, but outperforms all other formulations on the most challenging instances, those with low-capacity slack and a dense jobs matrix. We show that some of the differences in the performance of these various formulations arise from their different use of binary variables to represent production or set-up states. We also show that the LP relaxation of our Novel formulation provides a tighter lower bound than that of the Modified formulation. Our experiments demonstrate that, while the S&S formulation provides a much tighter LP bound, the Novel formulation is better able to exploit the intelligence of the CPLEX solution engine.

Date: 2018
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DOI: 10.1080/00207543.2017.1401232

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