DLSP for two-stage multi-item batch production

Abstract
The standard mixed-integer linear model formulation for the multi-item discrete lot-sizing and scheduling problem (DLSP) is extended by additional partially nonlinear constraints for the case of two-stage batch production. The corresponding feasibility problem is NP-complete in the case of non-zero setup limes. A simulated annealing approach is suggested for computing production schedules on both stages. Numerical results are presented.