Numerical Experiments with Intertemporal Interaction Costs in a Capacitated Multi-item Lot Sizing Model

We study a capacitated multi-item lot sizing problem in which production costs are modeled through quadratic functions capturing intertemporal interactions. The proposed formulation extends the classical CLSP by allowing non-separable cost structures across time periods. We present the mathematical model, discuss our solution approach, and report computational experiments highlighting the impact of intertemporal interactions and the associated computational challenges.