The capacitated lot-sizing problem with linked lot sizes

In this paper a new mixed integer programming model formulation and its incorporation into a time-oriented decomposition heuristic for the capacitated lot-sizing problem with linked lot sizes is proposed. The solution approach is based on an extended model formulation and valid inequalities to yield a tight formulation. Extensive computational tests prove the capability of this approach and show a superior solution quality with respect to other solution algorithms published so far.