A heuristic for lot-sizing in multi-stage systems
França, P. M., Armentano, V. A., Berretta, R. E. and Clark, A. (1997) A heuristic for lot-sizing in multi-stage systems. Computers and Operations Research, 24 (9). pp. 861-874. ISSN 0305-0548
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Publisher's URL: http://dx.doi.org/10.1016/S0305-0548(96)00097-4
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. A heuristic method build 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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