The profit maximizing multi-level capacitated lot-sizing problem

This paper addresses the new problem of profit maximizing multi-level capacitated lotsizing (PMLCLSP). The MLCLSP is a big-bucket model that allows the production of any number of products within a period. In this paper, we extend the MLCLSP to include price optimization with the objective of maximizing profit. We propose a mixed integer quadratic programming formulation to model the problem. Computational study is conducted by solving several test problems and the obtained results shows the efficiency of the proposed model in terms of solution quality and the time needed to reach such solutions