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

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

An optimization framework for solving capacitated multi-level lot-sizing problems with backlogging

This paper proposes two new mixed integer programming models for capacitated multi-level lot-sizing problems with backlogging, whose linear programming relaxations provide good lower bounds on the optimal solution value. We show that both of these strong formulations yield the same lower bounds. In addition to these theoretical results, we propose a new, effective optimization framework that achieves high quality solutions in reasonable computational time. Computational results show that the proposed optimization framework is superior to other well-known approaches on several important performance dimensions

A Tabu List-Based Algorithm for Capacitated Multilevel Lot-Sizing with Alternate Bills of Materials and Co-Production Environments

[EN] The definition of lot sizes represents one of the most important decisions in production planning. Lot-sizing turns into an increasingly complex set of decisions that requires efficient solution approaches, in response to the time-consuming exact methods (LP, MIP). This paper aims to propose a Tabu list-based algorithm (TLBA) as an alternative to the Generic Materials and Operations Planning (GMOP) model. The algorithm considers a multi-level, multi-item planning structure. It is initialized using a lot-for-lot (LxL) method and candidate solutions are evaluated through an iterative Material Requirements Planning (MRP) procedure. Three different sizes of test instances are defined and better results are obtained in the large and medium-size problems, with minimum average gaps close to 10.5%.This paper shows the results of the project entitled "Algoritmo heuristico basado en listas tabu para la planificacion de la produccion en sistemas multinivel con listas de materiales alternativas y entornos de coproduccion" supported by Universidad de la Costa and Universitat Politecnica de Valencia.Romero-Conrado, AR.; Coronado-Hernandez, J.; Rius-Sorolla, G.; García Sabater, JP. (2019). A Tabu List-Based Algorithm for Capacitated Multilevel Lot-Sizing with Alternate Bills of Materials and Co-Production Environments. Applied Sciences. 9(7):1-17. https://doi.org/10.3390/app9071464S11797Karimi, B., Fatemi Ghomi, S. M. T., & Wilson, J. M. (2003). The capacitated lot sizing problem: a review of models and algorithms. Omega, 31(5), 365-378. doi:10.1016/s0305-0483(03)00059-8Martí, R., & Reinelt, G. (2010). Heuristic Methods. 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European Journal of Operational Research, 99(2), 221-235. doi:10.1016/s0377-2217(97)00030-1Glock, C. H., Grosse, E. H., & Ries, J. M. (2014). The lot sizing problem: A tertiary study. International Journal of Production Economics, 155, 39-51. doi:10.1016/j.ijpe.2013.12.009KUIK, R., SALOMON, M., VAN WASSENHOVE, L. N., & MAES, J. (1993). LINEAR PROGRAMMING, SIMULATED ANNEALING AND TABU SEARCH HEURISTICS FOR LOTSIZING IN BOTTLENECK ASSEMBLY SYSTEMS. IIE Transactions, 25(1), 62-72. doi:10.1080/07408179308964266Standard Price List—AMPLhttps://ampl.com/products/standard-price-list/Seeanner, F., Almada-Lobo, B., & Meyr, H. (2013). Combining the principles of variable neighborhood decomposition search and the fix&optimize heuristic to solve multi-level lot-sizing and scheduling problems. Computers & Operations Research, 40(1), 303-317. doi:10.1016/j.cor.2012.07.002Hung, Y.-F., & Chien, K.-L. (2000). A multi-class multi-level capacitated lot sizing model. Journal of the Operational Research Society, 51(11), 1309-1318. doi:10.1057/palgrave.jors.2601026Kang, Y., Albey, E., & Uzsoy, R. (2018). Rounding heuristics for multiple product dynamic lot-sizing in the presence of queueing behavior. Computers & Operations Research, 100, 54-65. doi:10.1016/j.cor.2018.07.019BERRETTA, R., FRANÇA, P. M., & ARMENTANO, V. A. (2005). METAHEURISTIC APPROACHES FOR THE MULTILEVEL RESOURCE-CONSTRAINED LOT-SIZING PROBLEM WITH SETUP AND LEAD TIMES. Asia-Pacific Journal of Operational Research, 22(02), 261-286. doi:10.1142/s0217595905000510KIMMS, A. (1996). Competitive methods for multi-level lot sizing and scheduling: tabu search and randomized regrets. International Journal of Production Research, 34(8), 2279-2298. doi:10.1080/00207549608905025Sabater, J. P. G., Maheut, J., & Garcia, J. A. M. (2013). A new formulation technique to model materials and operations planning: the generic materials and operations planning (GMOP) problem. European J. of Industrial Engineering, 7(2), 119. doi:10.1504/ejie.2013.052572Maheut, J., & Sabater, J. P. G. (2013). Algorithm for complete enumeration based on a stroke graph to solve the supply network configuration and operations scheduling problem. Journal of Industrial Engineering and Management, 6(3). doi:10.3926/jiem.550Rius-Sorolla, G., Maheut, J., Coronado-Hernandez, J. R., & Garcia-Sabater, J. P. (2018). Lagrangian relaxation of the generic materials and operations planning model. Central European Journal of Operations Research, 28(1), 105-123. doi:10.1007/s10100-018-0593-0Maheut, J., Garcia-Sabater, J. P., & Mula, J. (2012). The Generic Materials and Operations Planning (GMOP) Problem Solved Iteratively: A Case Study in Multi-site Context. IFIP Advances in Information and Communication Technology, 66-73. doi:10.1007/978-3-642-33980-6_8Maheut, J. P. D. (s. f.). Modelos y Algoritmos Basados en el Concepto Stroke para la Planificación y Programación de Operaciones con Alternativas en Redes de Suministro. doi:10.4995/thesis/10251/29290Glover, F. (1989). Tabu Search—Part I. ORSA Journal on Computing, 1(3), 190-206. doi:10.1287/ijoc.1.3.190Glover, F., Taillard, E., & Taillard, E. (1993). A user’s guide to tabu search. Annals of Operations Research, 41(1), 1-28. doi:10.1007/bf02078647Chelouah, R., & Siarry, P. (2000). Tabu Search applied to global optimization. European Journal of Operational Research, 123(2), 256-270. doi:10.1016/s0377-2217(99)00255-6Raza, S. A., Akgunduz, A., & Chen, M. Y. (2006). A tabu search algorithm for solving economic lot scheduling problem. Journal of Heuristics, 12(6), 413-426. doi:10.1007/s10732-006-6017-7Cesaret, B., Oğuz, C., & Sibel Salman, F. (2012). A tabu search algorithm for order acceptance and scheduling. Computers & Operations Research, 39(6), 1197-1205. doi:10.1016/j.cor.2010.09.018Li, X., Baki, F., Tian, P., & Chaouch, B. A. (2014). A robust block-chain based tabu search algorithm for the dynamic lot sizing problem with product returns and remanufacturing. Omega, 42(1), 75-87. doi:10.1016/j.omega.2013.03.003Li, J., & Pan, Q. (2015). Solving the large-scale hybrid flow shop scheduling problem with limited buffers by a hybrid artificial bee colony algorithm. Information Sciences, 316, 487-502. doi:10.1016/j.ins.2014.10.009Hindi, K. S. (1995). Solving the single-item, capacitated dynamic lot-sizing problem with startup and reservation costs by tabu search. Computers & Industrial Engineering, 28(4), 701-707. doi:10.1016/0360-8352(95)00027-xHindi, K. S. (1996). Solving the CLSP by a Tabu Search Heuristic. Journal of the Operational Research Society, 47(1), 151-161. doi:10.1057/jors.1996.13Gopalakrishnan, M., Ding, K., Bourjolly, J.-M., & Mohan, S. (2001). A Tabu-Search Heuristic for the Capacitated Lot-Sizing Problem with Set-up Carryover. Management Science, 47(6), 851-863. doi:10.1287/mnsc.47.6.851.9813Glover, F. (1990). Tabu Search—Part II. ORSA Journal on Computing, 2(1), 4-32. doi:10.1287/ijoc.2.1.4Overview for Create General Full Factorial Designhttps://support.minitab.com/en-us/minitab/18/help-and-how-to/modeling-statistics/doe/how-to/factorial/create-factorial-design/create-general-full-factorial/before-you-start/overview/Perttunen, J. (1994). On the Significance of the Initial Solution in Travelling Salesman Heuristics. Journal of the Operational Research Society, 45(10), 1131-1140. doi:10.1057/jors.1994.183Elaziz, M. A., & Mirjalili, S. (2019). A hyper-heuristic for improving the initial population of whale optimization algorithm. Knowledge-Based Systems, 172, 42-63. doi:10.1016/j.knosys.2019.02.010Chen, C.-F., Wu, M.-C., & Lin, K.-H. (2013). Effect of solution representations on Tabu search in scheduling applications. Computers & Operations Research, 40(12), 2817-2825. doi:10.1016/j.cor.2013.06.003Tabu List Based Algorithm Datasetshttps://github.com/alfonsoromeroc/tlba-gmo

A hybrid heuristic for the multi-plant capacitated lot sizing problem with setup carry-over

This paper addresses the capacitated lot sizing problem (CLSP) with a single stage composed of multiple plants, items and periods with setup carry-over among the periods. The CLSP is well studied and many heuristics have been proposed to solve it. Nevertheless, few researches explored the multi-plant capacitated lot sizing problem (MPCLSP), which means that few solution methods were proposed to solve it. Furthermore, to our knowledge, no study of the MPCLSP with setup carry-over was found in the literature. This paper presents a mathematical model and a GRASP (Greedy Randomized Adaptive Search Procedure) with path relinking to the MPCLSP with setup carry-over. This solution method is an extension and adaptation of a previously adopted methodology without the setup carry-over. Computational tests showed that the improvement of the setup carry-over is significant in terms of the solution value with a low increase in computational time.FAPES

Improvement to an existing multi-level capacitated lot sizing problem considering setup carryover, backlogging, and emission control

This paper presents a multi-level, multi-item, multi-period capacitated lot-sizing problem. The lot-sizing problem studies can obtain production quantities, setup decisions and inventory levels in each period fulfilling the demand requirements with limited capacity resources, considering the Bill of Material (BOM) structure while simultaneously minimizing the production, inventory, and machine setup costs. The paper proposes an exact solution to Chowdhury et al. (2018)\u27s[1] developed model, which considers the backlogging cost, setup carryover & greenhouse gas emission control to its model complexity. The problem contemplates the Dantzig-Wolfe (D.W.) decomposition to decompose the multi-level capacitated problem into a single-item uncapacitated lot-sizing sub-problem. To avoid the infeasibilities of the weighted problem (WP), an artificial variable is introduced, and the Big-M method is employed in the D.W. decomposition to produce an always feasible master problem. In addition, Wagner & Whitin\u27s[2] forward recursion algorithm is also incorporated in the solution approach for both end and component items to provide the minimum cost production plan. Introducing artificial variables in the D.W. decomposition method is a novel approach to solving the MLCLSP model. A better performance was achieved regarding reduced computational time (reduced by 50%) and optimality gap (reduced by 97.3%) in comparison to Chowdhury et al. (2018)\u27s[1] developed model

Meta-Heuristics for Dynamic Lot Sizing: a review and comparison of solution approaches

Proofs from complexity theory as well as computational experiments indicate that most lot sizing problems are hard to solve. Because these problems are so difficult, various solution techniques have been proposed to solve them. In the past decade, meta-heuristics such as tabu search, genetic algorithms and simulated annealing, have become popular and efficient tools for solving hard combinational optimization problems. We review the various meta-heuristics that have been specifically developed to solve lot sizing problems, discussing their main components such as representation, evaluation neighborhood definition and genetic operators. Further, we briefly review other solution approaches, such as dynamic programming, cutting planes, Dantzig-Wolfe decomposition, Lagrange relaxation and dedicated heuristics. This allows us to compare these techniques. Understanding their respective advantages and disadvantages gives insight into how we can integrate elements from several solution approaches into more powerful hybrid algorithms. Finally, we discuss general guidelines for computational experiments and illustrate these with several examples

Self-adaptive randomized constructive heuristics for the multi-item capacitated lot-sizing problem

Capacitated lot-sizing problems (CLSPs) are important and challenging optimization problems in production planning. Amongst the many approaches developed for CLSPs, constructive heuristics are known to be the most intuitive and fastest method for finding good feasible solutions for the CLSPs, and therefore are often used as a subroutine in building more sophisticated exact and metaheuristic approaches. Classical constructive heuristics, such as the period-by-period heuristics and lot elimination heuristics, are first introduced in the 1990s, and thereafter widely used in solving the CLSPs. This paper evaluates the performance of period-by-period and lot elimination heuristics, and improves the heuristics using perturbation techniques and self-adaptive methods. We have also proposed a procedure for automatically adjusting the parameters of the proposed heuristics so that the values of the parameters can be chosen based on features of individual instances. Experimental results show that the proposed self-adaptive randomized period-by-period constructive heuristics are efficient and can find better solutions with less computational time than the tabu search and lot elimination heuristics. When the proposed constructive heuristic is used in a basic tabu search framework, high-quality solutions with 0.88% average optimality gap can be obtained on benchmark instances of 12 periods and 12 items, and optimality gap within 1.2% for the instances with 24 periods and 24 items

Fix-and-Optimize and Variable Neighborhood Search Approaches for Stochastic Multi-Item Capacitated Lot-Sizing Problems

We discuss stochastic multi-item capacitated lot-sizing problems with and without setup carryovers (also known as link lot size), S-MICLSP and S-MICLSP-L. The two models are motivated from a real-world steel enterprise. To overcome the nonlinearity of the models, a piecewise linear approximation method is proposed. We develop a new fix-and-optimize (FO) approach to solve the approximated models. Compared with the existing FO approach(es), our FO is based on the concept of “k-degree-connection” for decomposing the problems. Furthermore, we also propose an integrative approach combining our FO and variable neighborhood search (FO-VNS), which can improve the solution quality of our FO approach by diversifying the search space. Numerical experiments are performed on the instances following the nature of realistic steel products. Our approximation method is shown to be efficient. The results also show that the proposed FO and FO-VNS approaches significantly outperform the recent FO approaches, and the FO-VNS approaches can be more outstanding on the solution quality with moderate computational effort

Lot-Sizing Problem for a Multi-Item Multi-level Capacitated Batch Production System with Setup Carryover, Emission Control and Backlogging using a Dynamic Program and Decomposition Heuristic

Wagner and Whitin (1958) develop an algorithm to solve the dynamic Economic Lot-Sizing Problem (ELSP), which is widely applied in inventory control, production planning, and capacity planning. The original algorithm runs in O(T^2) time, where T is the number of periods of the problem instance. Afterward few linear-time algorithms have been developed to solve the Wagner-Whitin (WW) lot-sizing problem; examples include the ELSP and equivalent Single Machine Batch-Sizing Problem (SMBSP). This dissertation revisits the algorithms for ELSPs and SMBSPs under WW cost structure, presents a new efficient linear-time algorithm, and compares the developed algorithm against comparable ones in the literature. The developed algorithm employs both lists and stacks data structure, which is completely a different approach than the rest of the algorithms for ELSPs and SMBSPs. Analysis of the developed algorithm shows that it executes fewer number of basic actions throughout the algorithm and hence it improves the CPU time by a maximum of 51.40% for ELSPs and 29.03% for SMBSPs. It can be concluded that the new algorithm is faster than existing algorithms for both ELSPs and SMBSPs. Lot-sizing decisions are crucial because these decisions help the manufacturer determine the quantity and time to produce an item with a minimum cost. The efficiency and productivity of a system is completely dependent upon the right choice of lot-sizes. Therefore, developing and improving solution procedures for lot-sizing problems is key. This dissertation addresses the classical Multi-Level Capacitated Lot-Sizing Problem (MLCLSP) and an extension of the MLCLSP with a Setup Carryover, Backlogging and Emission control. An item Dantzig Wolfe (DW) decomposition technique with an embedded Column Generation (CG) procedure is used to solve the problem. The original problem is decomposed into a master problem and a number of subproblems, which are solved using dynamic programming approach. Since the subproblems are solved independently, the solution of the subproblems often becomes infeasible for the master problem. A multi-step iterative Capacity Allocation (CA) heuristic is used to tackle this infeasibility. A Linear Programming (LP) based improvement procedure is used to refine the solutions obtained from the heuristic method. A comparative study of the proposed heuristic for the first problem (MLCLSP) is conducted and the results demonstrate that the proposed heuristic provide less optimality gap in comparison with that obtained in the literature. The Setup Carryover Assignment Problem (SCAP), which consists of determining the setup carryover plan of multiple items for a given lot-size over a finite planning horizon is modelled as a problem of finding Maximum Weighted Independent Set (MWIS) in a chain of cliques. The SCAP is formulated using a clique constraint and it is proved that the incidence matrix of the SCAP has totally unimodular structure and the LP relaxation of the proposed SCAP formulation always provides integer optimum solution. Moreover, an alternative proof that the relaxed ILP guarantees integer solution is presented in this dissertation. Thus, the SCAP and the special case of the MWIS in a chain of cliques are solvable in polynomial time

A New Dantzig-Wolfe Reformulation And Branch-And-Price Algorithm For The Capacitated Lot Sizing Problem With Set Up Times

The textbook Dantzig-Wolfe decomposition for the Capacitated LotSizing Problem (CLSP),as already proposed by Manne in 1958, has animportant structural deficiency. Imposingintegrality constraints onthe variables in the full blown master will not necessarily givetheoptimal IP solution as only production plans which satisfy theWagner-Whitin condition canbe selected. It is well known that theoptimal solution to a capacitated lot sizing problem willnotnecessarily have this Wagner-Whitin property. The columns of thetraditionaldecomposition model include both the integer set up andcontinuous production quantitydecisions. Choosing a specific set upschedule implies also taking the associated Wagner-Whitin productionquantities. We propose the correct Dantzig-Wolfedecompositionreformulation separating the set up and productiondecisions. This formulation gives the samelower bound as Manne'sreformulation and allows for branch-and-price. We use theCapacitatedLot Sizing Problem with Set Up Times to illustrate our approach.Computationalexperiments are presented on data sets available from theliterature. Column generation isspeeded up by a combination of simplexand subgradient optimization for finding the dualprices. The resultsshow that branch-and-price is computationally tractable andcompetitivewith other approaches. Finally, we briefly discuss how thisnew Dantzig-Wolfe reformulationcan be generalized to other mixedinteger programming problems, whereas in theliterature,branch-and-price algorithms are almost exclusivelydeveloped for pure integer programmingproblems.branch-and-price;Lagrange relaxation;Dantzig-Wolfe decomposition;lot sizing;mixed-integer programming