MIP Formulations for a Rich Real-World Lot-Sizing Problem with Setup Carryover

A rich lot-sizing problem is studied in this manuscript which comes from a real-world application. Our new lot-sizing problem combines several features, i.e., parallel machines, production time windows, backlogging, lost sale and setup carryover. Three mixed integer programming formulations are proposed. We theoretically and computationally compare these different formulations, testing them on real-world and randomly generated instances. Our study is the first step for efficiently tackling and solving this challenging real-world lot-sizing problem.

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