Supply chain planning with order/setup costs and capacity constraints a new Lagrangian relaxation approach

Haoxun Chen (1) , Chengbin Chu (1)

1 LOSI - Laboratoire d'Optimisation des Systèmes Industriels

In our previous work, we developed a heuristic approach that combines Lagrangian relaxation (LR) with local improvement for supply chain planning modeled as a multi-item multi-level capacitated lot sizing problem. In this paper, we explore some structural properties of the problem and improve the approach by reducing the number of Lagrange multipliers. As the previous one, our new LR approach only relaxes the technical constraints that each 0-1 setup variable must take value 1 if its corresponding continuous variable is positive. By taking the advantages of the reduced number of the multipliers, the new approach can obtain solutions of the same high quality with a reduced computation time.

Keywords: Supply chains; Costs; Capacity planning; Lagrangian functions; Lot sizing; Linear programming; Production planning; Stochastic processes; Demand forecasting; Laboratories

Domains: Operations Research [cs.RO]; Automatic

Haoxun Chen, Chengbin Chu. Supply chain planning with order/setup costs and capacity constraints a new Lagrangian relaxation approach. IEEE International Conference on Robotics and Automation. IEEE ICRA 2003, Sep 2003, Taipei, Taiwan. pp.1743-1748, ⟨10.1109/ROBOT.2003.1241846⟩. ⟨hal-02521708⟩