Solving large-scale profit maximization capacitated lot-size problems by heuristic methods

This paper introduces a simple heuristic for a quadratic programming sub-problem within a Lagrangean relaxation heuristic for a dynamic pricing and lot-size problem. This simple heuristic is demonstrated to work well on both ‘standard problem instances’ from the CLSP-literature, as well as on very large-scale cases. Additionally, we introduce price constraints within the framework of dynamic pricing, discuss their relevance in a real world market modelling, and demonstrate their applicability within this algorithmic framework.