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Statistical search methods for lotsizing problems

Author: Van Wassenhove, Luk N. ; Salomon, Marc ; Kuik, RoelofINSEAD Area: Technology and Operations Management Series: Working Paper ; 92/09/TM Publisher: Fontainebleau : INSEAD, 1992.Language: EnglishDescription: 14 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: The main objective of lotsizing is to generate a minimum cost production and inventory schedule, such that customer demand is satisfied, and capacity restrictions imposed on production resources are not violated. This paper discusses the author's experiences in solving these, in general NP-hard, lotsizing problems with popular statistical search techniques such simulated annealing and tabu search. The paper concludes with some critical remarks on the use of statistical search methods for solving lotsizing problems
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The main objective of lotsizing is to generate a minimum cost production and inventory schedule, such that customer demand is satisfied, and capacity restrictions imposed on production resources are not violated. This paper discusses the author's experiences in solving these, in general NP-hard, lotsizing problems with popular statistical search techniques such simulated annealing and tabu search. The paper concludes with some critical remarks on the use of statistical search methods for solving lotsizing problems

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