A heuristic method for lot-sizing in multi-stage systems

A heuristic method for lot-sizing in multi-stage systems

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Article ID: iaor1998674
Country: United Kingdom
Volume: 24
Issue: 9
Start Page Number: 861
End Page Number: 874
Publication Date: Sep 1997
Journal: Computers and Operations Research
Authors: , , ,
Keywords: heuristics
Abstract:

This article considers the lot-sizing problem in multi-stage production settings with capacity-constrained resources. This problem deals with the determination of a production plan for the end item and its components in order to meet the forecast demand in each period of a planning horizon. The production plan should minimize the sum of production, setup and inventory costs. An heuristic method built upon a formulation of the problem in terms of echelon stock is developed. Computational results are reported and the solutions' quality is evaluated through Lagrangean lower bounds.

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