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A lot-sizing problem in deliberated and controlled co-production systems

Bahadır Pamuk, Semra Ağralı, Z. Caner Taşkın and Banu Kabakulak

IISE Transactions, 2022, vol. 54, issue 10, 950-962

Abstract: We consider an uncapacitated lot-sizing problem in co-production systems, in which it is possible to produce multiple items simultaneously in a single production run. Each product has a deterministic demand to be satisfied on time. The decision is to choose which items to co-produce and the amount of production throughout a predetermined planning horizon. We show that the lot-sizing problem with co-production is strongly NP-Hard. Then, we develop various Mixed-Integer Linear Programming (MILP) formulations of the problem and show that LP relaxations of all MILPs are equal. We develop a separation algorithm based on a set of valid inequalities, lower bounds based on a dynamic lot-sizing relaxation of our problem and a constructive heuristic that is used to obtain an initial solution for the solver, which form the basis of our proposed Branch & Cut algorithm for the problem. We test our models and algorithms on different data sets and provide the results.

Date: 2022
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DOI: 10.1080/24725854.2021.2022250

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