Using tabu search with ranking candidate list to solve production planning problems with setups

This study considers production planning problems involving multiple products, multiple resources, multiple periods, setup times, and setup costs. It can be formulated as a mixed integer program (MIP). Solving a realistic MIP production planning problem is NP-hard; therefore, we use tabu search methods to solve such a difficult problem. Furthermore, we improve tabu search by a new candidate list strategy, which sorts the neighbor solutions using post-optimization information provided by the final tableau of the linear programming simplex algorithm. A neighbor solution with higher priority in the ranking sequence has a higher probability of being the best neighbor solution of a current solution. According to our experiments, the proposed candidate list strategy tabu search produces a good solution faster than the traditional simple tabu search. This study also suggests that if the evaluation of the entire neighborhood space in a tabu search algorithm takes too much computation and if an efficient and effective heuristic to rank the neighbor solutions can be developed, the speed of tabu search algorithm could be significantly increased by using the proposed candidate list strategy.