Heuristic algorithms for dynamic capacitated lotsizing for production flow networks with setup times

New heuristics are provided for the Multi Stage Capacitated Lot Sizing Problem with setup times for general convergent–divergent product structures. We attempt to find cost effective feasible schedules allowing end item backlogs as last resort, while strictly forbidding capacity violations and internal backlogs. The heuristics are of two types – A and B, differentiated by the order in which (resource, time period) cells are scheduled. Variants are obtained by different choices of strategies used in the subroutines of A and B. On comparison with the most generally applicable one in the literature, the heuristics developed here perform better. The multi-item shift strategies proposed earlier prove to be very valuable components in our heuristics. Inferences based on the results obtained are also provided.