An efficient MIP model for the capacitated lot-sizing and scheduling problem with sequence-dependent setups

Abstract

This paper presents a novel mathematical programming approach to the single-machine capacitated lot-sizing and scheduling problem with sequence-dependent setup times and setup costs. The approach is partly based on the earlier work of Haase and Kimms [2000. Lot sizing and scheduling with sequence-dependent setup costs and times and efficient rescheduling opportunities. International Journal of Production Economics 66(2), 159–169] which determines during pre-processing all item sequences that can appear in given time periods in optimal solutions. We introduce a new mixed-integer programming model in which binary variables indicate whether individual items are produced in a period, and parameters for this program are generated by a heuristic procedure in order to establish a tight formulation. Our model allows us to solve in reasonable time instances where the product of the number of items and number of time periods is at most 60–70. Compared to known optimal solution methods, it solves significantly larger problems, often with orders of magnitude speedup.