A horizon decomposition approach for the capacitated lot-sizing problem with setup times

• Main Authors: FRAGKOS, Ioannis, DEGRAEVE, Zeger, DE REYCK, Bert
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: algorithms; lot sizing; branch and price; Business Administration, Management, and Operations; Theory and Algorithms
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6762; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7742/viewcontent/A_Horizon_Decomposition_Approach_for_the_Capacitated_Lot_Sizing_Problem_with_Setup_Times.pdf
• Institution: Singapore Management University

We introduce horizon decomposition in the context of Dantzig-Wolfe decomposition, and apply it to the capacitated lot-sizing problem with setup times. We partition the problem horizon in contiguous overlapping intervals and create subproblems identical to the original problem, but of smaller size. The user has the flexibility to regulate the size of the master problem and the subproblem via two scalar parameters. We investigate empirically which parameter configurations are efficient, and assess their robustness at different problem classes. Our branch-and-price algorithm outperforms state-of-the-art branch-and-cut solvers when tested to a new data set of challenging instances that we generated. Our methodology can be generalized to mathematical programs with a generic constraint structure.