Modeling lotsizing and scheduling problems with sequence dependent setups

Several production environments require simultaneous planing of sizing and scheduling of sequences of production lots. Integration of sequencing decisions in lotsizing and scheduling problems has received an increased attention from the research community due to its inherent applicability to real world problems. A two-dimensional classification framework is proposed to survey and classify the main modeling approaches to integrate sequencing decisions in discrete time lotsizing and scheduling models. Computational experiments are conducted to assess the performance of various models, in terms of running times and upper bounds, when solving real-word size instances. We also present a new formulation for the problem using commodity flow based subtour elimination constraints.