A math-heuristic Dantzig-Wolfe algorithm for capacitated lot sizing

  • Authors:
  • Marco Caserta;Stefan Voβ

  • Affiliations:
  • IE Business School, Madrid, Spain 28006;Institute of Information Systems (IWI), University of Hamburg, Hamburg, Germany 20146

  • Venue:
  • Annals of Mathematics and Artificial Intelligence
  • Year:
  • 2013

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Abstract

The multi-item multi-period capacitated lot sizing problem with setups (CLST) is a well known optimization problem with wide applicability in real-world production planning problems. Based on a recently proposed Dantzig-Wolfe approach we present a novel math-heuristic algorithm for the CLST. The major contribution of this paper lies in the presentation of an algorithm that exploits exact techniques (Dantzig-Wolfe) in a metaheuristic fashion, in line with the novel trend of math-heuristic algorithms. To the best of the authors' knowledge, it is the first time that such technique is employed within a metaheuristic framework, with the aim of tackling challenging instances in short computational time. Moreover, we provide reasoning that the approach may be beneficial when additional constraints like perishability constraints are added. This also constitutes an important extension when looking at it from the view of solution methods.