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A Modeling and Hybridized Decomposition Approach for the Multi-level Capacitated Lot-Sizing Problem with Setup Carryover, Backlogging, and Emission Control

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Abstract

The goal of the production planning problem is to determine the optimum quantity to produce in order to satisfy demand over a predetermined planning horizon with the least amount of money spent. Making the appropriate choices in production planning will impact a manufacturing company’s performance and productivity, which is crucial to remain competitive in the market. Therefore, developing and enhancing techniques for solving production planning problems is very significant. This paper proposes a mixed-integer linear programming model for this extension of the dynamic multi-level capacitated lot-sizing under study, where setup carryover, backlogging, and emission control are considered. An item Dantzig-Wolfe decomposition-based heuristic procedure is developed, and a dynamic programming and column generation approach is used to solve the problem. We also propose a multi-step iterative capacity allocation heuristic procedure to handle any infeasibilities that arise when solving the problem. We evaluate the performance of the developed solution approach using a test data set available in the literature. Computational results show that the proposed optimization framework provides competitive solutions within a reasonable timeframe.

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Acknowledgements

I would like to express my sincere gratitude to my supervisors, Professor Dr. Fazle Baki and Professor Dr. Ahmed Azab for their valuable guidance and support throughout the research process.

Funding

This research is partially funded by the Natural Sciences and Engineering Research Council’s (NSERC) Discovery Grants (A/C # 811008). This research is also partially funded by the Research and Teaching Innovation Fund (RTIF) and the internal faculty funds.

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Nusrat T. Chowdhury is the major contributor in writing the manuscript. M.F. Baki and A. Azab did the overall supervision while writing the manuscript. All authors read and approved the final manuscript.

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Correspondence to Nusrat T. Chowdhury.

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Chowdhury, N.T., Baki, M.F. & Azab, A. A Modeling and Hybridized Decomposition Approach for the Multi-level Capacitated Lot-Sizing Problem with Setup Carryover, Backlogging, and Emission Control. Oper. Res. Forum 5, 68 (2024). https://doi.org/10.1007/s43069-024-00350-8

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