A matheuristic approach for the multi-level capacitated lot-sizing problem with substitution and backorder

The lot-sizing problem aims at determining the products to be produced and their quantities for each time period, which is a difficult problem in production planning. This problem becomes even more complicated when practical aspects such as limited production capacity, bill of materials, and item su...

Full description

Saved in:
Bibliographic Details
Published in:International journal of production research 2024-07, Vol.62 (13), p.4645-4673
Main Authors: Qin, Hu, Zhuang, Haocheng, Yu, Chunlong, Li, Jiliu
Format: Article
Language:English
Subjects:
Algorithms
backorder
Backorders
Factorial design
fix-and-optimise
Lot sizing
Lot-sizing problem
Manufacturing
Mathematical programming
matheuristic
Production capacity
Production planning
relax-and-fix
Substitutes
substitution
Citations: Items that this one cites
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The lot-sizing problem aims at determining the products to be produced and their quantities for each time period, which is a difficult problem in production planning. This problem becomes even more complicated when practical aspects such as limited production capacity, bill of materials, and item substitution are considered. In this paper, we study a new variant of the lot-sizing problem, called the multi-level capacitated lot-sizing problem with substitution and backorder. Unlike previous studies, this variant considers substitutions at both the product and component levels, which is based on the real needs of manufacturers to increase planning flexibility. Backorders are allowed, but should be delivered within a certain time limitation. We formulate this problem using a mathematical programming model. A matheuristic approach is proposed to solve the problem. This first generates an initial feasible solution using a relax-and-fix algorithm, and then improves it using a hybrid fix-and-optimise algorithm. The proposed algorithm is calibrated with a full factorial design of experiments, and its efficiency is well validated. Finally, through extensive numerical experiments, we analyse the properties of this new lot-sizing problem, such as the effect of substitution options, and the influence of backorder time limitation, and provide several useful managerial insights for manufacturing companies to save costs in production planning.
ISSN:0020-7543
1366-588X
DOI:10.1080/00207543.2023.2270076