Capacitated Lot-Sizing and Scheduling Problem for Second-Tier Suppliers in the Automotive Sector

This paper extends Gupta and Magnusson’s (Comput Oper Res 32:727–747, 2005) original proposal for the single machine Capacitated Lot-sizing Scheduling Problem (CLSP) with sequence-dependent setup costs to adapt it to a second-tier supplier in the automotive sector. We propose an extended mixed-integer program for the single machine CLSP that addresses raw material requirements and inventories, stock coverages, holding space limitations and overtime costs. Our proposal also contemplates scheduling plans with demands defined in units and capacities defined in units per period, which is very common in the automotive sector. Finally, a real-world description of the problem is considered as the basis of this work, although the validation model is carried out with a simple numerical example of Gupta and Magnusson (Comput Oper Res 32:727–747, 2005).