The Capacitated Problem
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In this chapter the multilevel capacitated lotsizing problem (MLCLP) is considered. This problem, which was originally stated by Billington et al.  in 1983, occurs when production schedules have to be determined for multilevel production-inventory systems in the presence of capacity constraints on production facilities. It is assumed that time-phased demand is dynamic and deterministic, while backlogging is not allowed. The objective is to determine a time-phased production schedule for end items as well as for components, such that the sum of item-dependent setup costs and item-dependent inventory holding costs is minimized, while period-dependent capacity limitations must not be violated. The problems studied in this chapter are restricted in that neither setup times nor overtime work are considered. Furthermore, as in a second paper by Billington , it is assumed that only one bottleneck exists, which is situated at a single level in the product structure.
KeywordsSimulated Annealing Tabu Search Product Structure Simulated Annealing Algorithm Production Schedule
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