Capacitated lot sizing and scheduling with order acceptance and delivery time windows: Mathematical model and a mip-based heuristic

Abstract

This research addresses a lot sizing and scheduling problem inspired by a real-world production environment where the customers make advanced orders and the industry need to decide which orders will be accepted with the aim of maximizing the profit respecting the production capacity constraints. Orders are composed of different types of items which must be delivered within a given time interval and, moreover, such orders cannot be split. A mixed integer programming (MIP) model is proposed to represent the problem and a MIP-based heuristic is also proposed to deliver good solutions at an acceptable computational time. The heuristic is composed of three phases (construction, deterministic improvement and stochastic improvement phases) and combines relax-and-fix, fix-and-optimize, and iterative MIP based neighborhood search procedures. Computational tests are presented in order to study the efficiency of the proposed approaches.