A heuristic for dynamic multi-item multi-level capacitated lotsizing for general product structures

This paper presents an heuristic for the multi-item, multi-level dynamic lotsizing problem in general non-cyclic product/operation structures under multiple capacity constraints. The proposed procedure uses a modification of the Dixon–Silver heuristic to solve a sequence of single-level capacitated multi-item lotsizing problems (CLSP). Within the frame of this general procedure two costing methods and two ways of ordering the product/operation structure are considered. The heuristic is tested on a set of problems for which the optimal solution is available.