Paper Info
Title
Coordinated Capacitated Lot-Sizing Problem With Dynamic Demand: A Lagrangian Heuristic
Abstract
Coordinated replenishment problems are common in manufacturing and distribution when a family of items shares a common production line, supplier, or a mode of transportation. In these situations the coordination of shared, and often limited, resources across items is economically attractive. This paper describes a mixed-integer programming formulation and Lagrangian relaxation solution procedure for the single-family coordinated capacitated lot-sizing problem with dynamic demand. The problem extends both the multi-item capacitated dynamic demand lot-sizing problem and the uncapacitated coordinated dynamic demand lot-sizing problem. We provide the results of computational experiments investigating the mathematical properties of the formulation and the performance of the Lagrangian procedures. The results indicate the superiority of the dual-based heuristic over linear programming-based approaches to the problem. The quality of the Lagrangian heuristic solution improved in most instances with increases in problem size. Heuristic solutions averaged 2.52% above optimal. The procedures were applied to an industry test problem yielding a 22.5% reduction in total costs.
Year
DOI
Venue
2004
10.1111/j.1540-5414.2004.02396.x
DECISION SCIENCES
Field
DocType
Volume
Heuristic,Mathematical optimization,Economics,Lagrangian heuristic,Dynamic demand,Linear programming,Production line,Sizing,Lagrangian relaxation,Total cost,Operations management
Journal
35
Issue
ISSN
Citations 
1
0011-7315
10
PageRank 
References 
Authors
0.80
21
2
Name
Order
Citations
PageRank
E. Powell Robinson11338.70
F. Barry Lawrence2101.13