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An informative column generation and decomposition method for a production planning and facility location problem

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  • Liang, Zhe
  • He, Yan
  • Wu, Tao
  • Zhang, Canrong

Abstract

This paper develops an informative column generation and decomposition method for a capacitated multi-item lot sizing and facility location problem with backlogging. The method hybridizes column generation to achieve a relaxed linear solution and a lower bound and a decomposition method (i.e., relax-and-fix) to achieve a feasible solution. The two solutions are used for a neighborhood search procedure that fixes a subset of setup decision variables to iteratively reduce problem sizes. The relax-and-fix method is applied again to solve these smaller-size restricted problems with a purpose of progressively improving solution qualities. To show the effectiveness of the method, a number of computational tests are performed using newly-generated benchmark problems. Computational comparisons with a commercial solver (CPLEX) show that the proposed method provides competitive solution results.

Suggested Citation

  • Liang, Zhe & He, Yan & Wu, Tao & Zhang, Canrong, 2015. "An informative column generation and decomposition method for a production planning and facility location problem," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 88-96.
    • Handle: RePEc:eee:proeco:v:170:y:2015:i:pa:p:88-96
    DOI: 10.1016/j.ijpe.2015.08.024
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    References listed on IDEAS

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    1. Raoul Fonkoua Fofou & Zhigang Jiang & Qingshan Gong & Yihua Yang, 2022. "A Decision-Making Model for Remanufacturing Facility Location in Underdeveloped Countries: A Capacitated Facility Location Problem Approach," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    2. Wu, Tao & Huang, Le & Liang, Zhe & Zhang, Xiaoning & Zhang, Canrong, 2022. "A supervised learning-driven heuristic for solving the facility location and production planning problem," European Journal of Operational Research, Elsevier, vol. 301(2), pages 785-796.
    3. Wu, Tao & Xiao, Fan & Zhang, Canrong & Zhang, Defu & Liang, Zhe, 2019. "Regression and extrapolation guided optimization for production–distribution with ship–buy–exchange options," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 15-37.
    4. Wolfgang Albrecht & Martin Steinrücke, 2020. "Continuous-time scheduling of production, distribution and sales in photovoltaic supply chains with declining prices," Flexible Services and Manufacturing Journal, Springer, vol. 32(3), pages 629-667, September.
    5. Wei, Mingyuan & Qi, Mingyao & Wu, Tao & Zhang, Canrong, 2019. "Distance and matching-induced search algorithm for the multi-level lot-sizing problem with substitutable bill of materials," European Journal of Operational Research, Elsevier, vol. 277(2), pages 521-541.
    6. Zhang, Canrong & Xie, Fanrui & Huang, Kun & Wu, Tao & Liang, Zhe, 2017. "MIP models and a hybrid method for the capacitated air-cargo network planning and scheduling problems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 103(C), pages 158-173.
    7. Correia, Isabel & Melo, Teresa, 2016. "A computational comparison of formulations for a multi-period facility location problem with modular capacity adjustments and flexible demand fulfillment," Technical Reports on Logistics of the Saarland Business School 11, Saarland University of Applied Sciences (htw saar), Saarland Business School.
    8. Darvish, Maryam & Coelho, Leandro C., 2018. "Sequential versus integrated optimization: Production, location, inventory control, and distribution," European Journal of Operational Research, Elsevier, vol. 268(1), pages 203-214.

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