Solving the capacitated lot sizing problem with setup carryover using a new sequential hybrid approach

The aim of lot sizing problems is to determine the periods where production takes place and the quantities to be produced in order to satisfy the customer demand while minimizing the total cost. Due to its importance on the efficiency of the production and inventory systems, lot sizing problems are one of the most challenging production planning problems and have been studied for many years with different modelling features. Among these problems, the capacitated lot sizing problem (CLSP) has received a lot of attention from researchers. Having motivated from our earlier study, this study proposes a new hybrid approach for solving the CLSP with the extension of setup carryover. Moreover, the initialization scheme proposed in the earlier study has also been investigated comprehensively. Lastly, an experimental study evaluating the solution quality of the proposed approach is carried out using various problem instances and promising results are obtained when compared to the recent results in the literature.