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

• DOI: 10.1007/s10626-012-0141-3
• Publication Date: 2012-08-30T16:33:38Z
• Authors: Tao Wu; Kerem Akartunalı; Jie Song; Leyuan Shi
• Keywords: Management. Industrial Management; 0211 other engineering and technologies; HD28; 02 engineering and technology

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.