Production planning and scheduling integration through augmented Lagrangian optimization

To improve thequalityofdecisionmaking in theprocessoperations, it is essential to implement integrated planning and scheduling optimization. Major challenge for the integration lies in that the corresponding optimization problem is generally hard to solve because of the intractable model size. In this paper, ccepted 18 November 2009 vailable online 24 November 2009 eywords: lanning and scheduling integration ecomposition method augmented Lagrangianmethod is applied to solve the full-space integration problemwhich takes a block angular structure. To resolve the non-separability issue in the augmented Lagrangian relaxation, we study the traditional method which approximates the cross-product term through linearization and also propose a new decomposition strategy based on two-level optimization. The results from case study show that the augmented Lagrangian method is effective in solving the large integration problem and generating a feasible solution. Furthermore, the proposed decomposition strategy based on two-level er fea ugmented Lagrangian relaxation optimization can get bett