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Integrating Capacitated Lot Sizing and Sequence Dependent Setup Scheduling

In this paper, we propose an iterative scheme to generate a production plan that takes into account scheduling constraints due to changeover setup times in single-level manufacturing systems. We consider a planning horizon divided into periods. The procedure iterates by alternating between two decision levels: a lot sizing level and a scheduling level. In our iterative approach, the capacitated lot sizing problem is solved to optimality considering aggregate capacity utilization data average setup times and the scheduling problem it is solved by a heuristic algorithm based on GRASP. A preliminary set of computational experiments is presented and future works are discussed.