Lead time considerations for the multi-level capacitated lot-sizing problem

The classical multi-level capacitated lot-sizing problem is often not suitable to correctly capture resource requirements and precedence relations. We tackle this issue by explicitly modeling these two aspects. Two models are presented; one considering batch production and the other one allowing lot-streaming. Comparisons with traditional models demonstrate the capability of the new approach to deliver more realistic and practically feasible results. Large-scale cases are solved by Benders, which has been enhanced in several novel ways.