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A Simple Heuristic for Lot Sizing with Setup Times
Author(s) -
Trigeiro William W.
Publication year - 1989
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1989.tb01879.x
Subject(s) - sizing , overtime , mathematical optimization , heuristic , constraint (computer aided design) , computer science , simple (philosophy) , quality (philosophy) , holding cost , operations research , mathematics , economics , art , philosophy , geometry , epistemology , labour economics , visual arts
ABSTRACT This paper presents an easily understood and computationally efficient heuristic algorithm for the capacitated lot sizing problem (CLSP), the single machine lot‐sizing problem, with nonstationary costs, demands, and setup times. The algorithm solves problems with setup time or setup cost. A variation of the algorithm can solve problems when limited amounts of costly overtime are allowed. Results of experimentation indicate that the most significant effects on solution quality are due to the level of setup costs relative to holding costs and the size of the problems as determined by the number of items. Also affecting solution quality are tightness of the capacity constraint and variability of demand in a problem. When the capacity constraint is extremely tightly binding, it sometimes has difficulty finding solutions that do not require overtime.