A MULTIFAMILY DYNAMIC LOT-SIZING MODEL WITH COORDINATED REPLENISHMENTS

We consider a multi‐item production planning problem where items are grouped together into families. A family setup time is incurred when an item in a family is produced. Also, for each replenishment of a product an individual setup time may be incurred. The objective is to determine the time‐phased production schedule that minimizes the total inventory holding cost under demand and capacity constraints. In this article we develop a finite branch‐and‐bound algorithm for solving the problem. In addition, we present a heuristic procedure to obtain an initial feasible solution. This feasible solution is the initial incumbent solution in the branch‐and‐bound algorithm and is also used for preprocessing the problem data. Computational results are reported. Copyright © 1990 Wiley Periodicals, Inc., A Wiley Company