Multi-item capacitated lot-sizing by a Cross decomposition based algorithm

Multi-item capacitated lot-sizing involves the determination of production quantities in different periods in the presence of resource constraints. The model presented in this paper includes a setup time for the production of a lot of an item. The production of items in a given period is constrained by a limited regular time and a limited overtime. Moreover, the production level of any item in a given period is also limited. This problem is tackled by a Cross decomposition based algorithm which can provide an optimal solution, or a near optimal solution if computational time is restricted.