AN IMPROVED ALGORITHM FOR SOLVING THE ECONOMIC LOT-SIZE PROBLEM (ELSP)

A bounded enumeration combining non-linear optimization, heuristic pro cedure, and mixed integer programming is proposed to solve the capacit ated multi-item lot scheduling problem. The combined effect is demonst rated by a better solution to problem data which has been the subject of inquiry and investigation for over 20 years. In addition, the appro ach avoids the escape from infeasibility deficiencies of prior solutio n procedures. The attractiveness of the solution found can be confirme d by the close proximity of the production run frequency to that obtai ned from the independent solution. Since the independent solution refl ects the optimum economic tradeoff between incurring setup costs and i nventory carrying costs for each product individually, the advantages of deriving a multiproduct production schedule where the frequency of setups conform to these cost relationships are obvious.