Abstract
The Multilevel Lotsizing Problem (MLLP) is the problem of determining a minimal cost production schedule in a multilevel production environment.
The problem, which has been shown to be NP-Hard, is formulated as a mixed integer program. We discuss previous research on MLLP, and propose a new heuristic. The heuristic is based on Lagrange relaxation, dynamic programming and subgradient optimization techniques to obtain lower bounds, and on solving a sequence of single level subproblems to compute upper bounds.
Computational results show that our heuristic performs well for problems in which demand occurs for end-items only and in which production costs are constant over time.
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© 1992 Springer-Verlag Berlin · Heidelberg
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Salomon, M., Kuik, R., Van Wassenhove, L.N. (1992). A Lagrangian Heuristic for Multilevel Lotsizing. In: Bühler, W., Feichtinger, G., Hartl, R.F., Radermacher, F.J., Stähly, P. (eds) Papers of the 19th Annual Meeting / Vorträge der 19. Jahrestagung. Operations Research Proceedings, vol 1990. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-77254-2_49
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DOI: https://doi.org/10.1007/978-3-642-77254-2_49
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