and warehouse management leads to significant inefficiency in both
departments. Thus we investigate a production planning that con-
siders the warehouse space resource and a warehouse layout with
new storage assignment. In essence, we propose an integrated strategy
to combine the capacitated lot-sizing problem with warehouse layout
problem so that production process and warehousing can be coordi-
nated effectively.
The warehouse layout problem and the capacitated lot-sizing
problem have been studied extensively in research. However, to
our knowledge, these two problems have been addressed sepa-
rately in the current literature and they have not been considered
together in a mathematical model. Jans and Degraeve [21] review
the modeling for industrial lot-sizing problems and discuss the
four extensions of lot-sizing models. It is indicated in their dis-
cussion on new research directions that the integration of lot-
sizing, scheduling, and storage constraints affects the planning and
scheduling. Buschkühl et al. [4] presents a review of four decades
of research on dynamic capacitated lot-sizing and focuses on
modeling and algorithm for the problems. Although they highlight
that production planning is strongly related to the layout type and
organizational structure of a production system, the warehouse
layout is not taken into account in their reviewed literature on the
capacitated lot-sizing problem. Existing literature indicates that
most of the lot-sizing problems are hard to solve. Zhang and Lai
[51] review the multi-level warehouse layout problem with a
dedicated storage policy without considering the lot-sizing pro-
blem. Various researchers have combined the warehouse layout