SOLVING MIXED-INTEGER PROGRAMMING PRODUCTION PLANNING PROBLEMS WITH SETUPS BY SHADOW PRICE INFORMATION

Algorithms developed to solve linear programming (LP) problems and adv ances in computer speed have made large-scale LP problems solvable in time for implementation. Solving an LP is relatively easier than solvi ng an MIP for modern production planning problems. In this study, we p ropose a heuristic iterative algorithm between LP solution phases and setup decision computations for solving these difficult MIP production planning problems. By utilizing the shadow price information provided by the LP solution of the previous iteration, the setup decision comp utation converts an MIP problem into an LP problem, which can be effic iently solved in the current iteration. Extensive experiments show tha t the proposed heuristic algorithm performs well. (C) 1998 Elsevier Sc ience Ltd. All rights reserved.