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A hybrid Benders approach for coordinated capacitated lot-sizing of multiple product families with set-up times

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  • Tiffany Bayley
  • Haldun Süral
  • James H. Bookbinder

Abstract

We examine a coordinated capacitated lot-sizing problem for multiple product families, where demand is deterministic and time-varying. The problem considers set-up and holding costs, where capacity constraints limit the number of individual item and family set-up times and the amount of production in each period. Using a strong reformulation and relaxing the demand constraints, we improve both the upper and lower bounds using a combination of Benders decomposition and an evolutionary algorithm, followed by subgradient optimisation. Through computational experiments, we show that our method consistently achieves better bounds, reducing the duality gap compared to other single-family methods studied in the literature.

Suggested Citation

  • Tiffany Bayley & Haldun Süral & James H. Bookbinder, 2018. "A hybrid Benders approach for coordinated capacitated lot-sizing of multiple product families with set-up times," International Journal of Production Research, Taylor & Francis Journals, vol. 56(3), pages 1326-1344, February.
    • Handle: RePEc:taf:tprsxx:v:56:y:2018:i:3:p:1326-1344
    DOI: 10.1080/00207543.2017.1338778
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    Cited by:

    1. Gruson, Matthieu & Cordeau, Jean-François & Jans, Raf, 2021. "Benders decomposition for a stochastic three-level lot sizing and replenishment problem with a distribution structure," European Journal of Operational Research, Elsevier, vol. 291(1), pages 206-217.
    2. Wilco van den Heuvel & Semra Ağralı & Z. Caner Taşkın, 2023. "A Decomposition Algorithm for Single and Multiobjective Integrated Market Selection and Production Planning," INFORMS Journal on Computing, INFORMS, vol. 35(6), pages 1439-1453, November.

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