New Heuristic for Solving Capacitated Lot Sizing Problem with Setups, Production, Inventory and Back Orders (CLSPWSIPB).

Here we give standard 0-1 mixed integer linear program of CLSPSPIB. In this formulation we eliminate shortage variables and setup (0-1 integer) variables to pose the problem as 'all real' linear program in inventory and production variables. Based on its solution, we keep select variables as zeros or ones in the original CLSPSPIB. We get very good solutions in much reduced CPU time. Detailed computational experience is given. [ABSTRACT FROM AUTHOR]