Multi-product valid inequalities for the discrete lot-sizing and scheduling problem

Abstract

We consider a problem arising in the context of industrial production planning, namely the multi-product discrete lot-sizing and scheduling problem with sequence-dependent changeover costs. We aim at developing an exact solution approach based on a Cut & Branch procedure for this combinatorial optimization problem. To achieve this, we propose a new family of multi-product valid inequalities which corresponds to taking into account the conflicts between different products simultaneously requiring production on the resource. We then present both an exact and a heuristic separation algorithm which form the basis of a cutting-plane generation algorithm. We finally discuss computational results which confirm the practical usefulness of the proposed inequalities at strengthening the MILP formulation and at reducing the overall computation time.