This paper reports on our experiments with statistical search methods for solving lotsizing problems in production planning. In lotsizing problems the main objective is to generate a minimum cost production and inventory schedule, such that (i) customer demand is satisfied, and (ii) capacity restrictions imposed on production resources are not violated. We discuss our experiences in solving these, in general NP-hard, lotsizing problems with popular statistical search techniques like simulated annealing and tabu search. The paper concludes with some critical remarks on the use of statistical search methods for solving lotsizing problems.

Lotsizing, mixed-integer programming, simulated annealing, tabu search
dx.doi.org/10.1007/BF02023005, hdl.handle.net/1765/66348
Annals of Operations Research
Rotterdam School of Management (RSM), Erasmus University

Salomon, M, Kuik, R, & van Wassenhove, L.N. (1993). Statistical search methods for lotsizing problems. Annals of Operations Research, 41(4), 453–468. doi:10.1007/BF02023005