engleski

Lot Sizing Problem with Equipment Replacement as a Bilevel Programming Problem

The object of a Production Lot Sizing Problem is to minimize the sum of the costs of production, storage and set up. On the other hand, an Equipment Replacement Problem concerns a machine which deteriorates with age and the decision to replace it. The object is to decide when to replace the machine in order to maximize the utility of operating it. We introduce the hierarchy into the problem, and model the problem as the new bilevel mixed 0-1 integer programming problem called Bilevel Lot Sizing Problem with Equipment Replacement. We develop heuristics based on tabu search for solving the problem.

Lot sizing problem; equipment replacement; bilevel programming; heuristics

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