(A) simulated annealing algorithm for the capacitated lot-sizing and scheduling problem under sequence-dependent setup costs and setup times

Abstract

In this research, the single machine capacitated lot-sizing and scheduling problem with sequence-dependent setup costs and setup times (CLSPSD) is considered. This problem is an extension of capacitated lot-sizing and scheduling problem (CLSP) with an additional assumption of sequence-dependent setup costs and setup times. The objective of the problem is minimizing the sum of production costs, inventory holding costs and setup costs while satisfying the customer demands. It is known that CLSPSD is NP-hard. In this paper, a MIP formulation is presented. To handle the problem more efficiently, a conceptual model is suggested, and one of the well-known meta-heuristics, simulated annealing approach is applied. To illustrate the performance of this approach, various instances are tested and the results of this algorithm are compared with those of CLPEX. Computational results show that the approach generates optimal or near optimal solutions.