The capacitated lot sizing problem with setup carryover and splitting

Abstract

This paper focuses on the capacitated lot sizing problem with two extensions namely setup carryover and setup splitting. The capacitated lot sizing problem finds the production quantities and periods of the products on a single machine. The problem is extended with the concepts of setup carryover and splitting in order to use the capacity more efficiently. The setup carryover is defined as the production of a product that is continued over from one period to the following without incurring extra setup costs or times. When the setups are relatively long and can not be finished in a period, the option of setup splitting permits to finish it in the consecutive period. Although there have been number of studies considering setup carryover in lot sizing literature, setup splitting is generally disregarded. However, these two concepts complement each other and should be taken into account together. The aim of this paper is to show the importance of the setup splitting in the capacitated lot sizing models on some preliminary experiments.