Rolling-horizon and fix-and-relax heuristics for the multi-product multi-level capacitated lotsizing problem with sequence-dependent setups

Abstract

This paper discusses the multi-product multi-level capacitated lotsizing and scheduling problem with sequence-dependent setups. An exact formulation of the problem is provided as a mixed-integer program which is impractical to solve in reasonable computing time for non-small instances. To solve non-small instances of the problem, MIP-based heuristics are provided. To test the accuracy of heuristics, two lower bounds are developed and compared against the optimal solution. The trade-offs between schedule quality and computational time of heuristics are also provided.