Lot sizing with inventory bounds and fixed costs: Polyhedral study and computation

Alper Atamtürk*, Simge Kucukyavuz

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

44 Scopus citations

Abstract

We investigate the polyhedral structure of the lot-sizing problem with inventory bounds. We consider two models, one with linear cost on inventory, the other with linear and fixed costs on inventory. For both models, we identify facet-defining inequalities that make use of the inventory bounds explicitly and give exact separation algorithms. We also describe a linear programming formulation of the problem when the order and inventory costs satisfy the Wagner-Whitin nonspeculative property. We present computational experiments that show the effectiveness of the results in tightening the linear programming relaxations of the lot-sizing problem with inventory bounds and fixed costs.

Original languageEnglish (US)
Pages (from-to)711-730
Number of pages20
JournalOperations Research
Volume53
Issue number4
DOIs
StatePublished - Jul 2005

Keywords

  • Computation
  • Facets
  • Lot sizing
  • Separation algorithms

ASJC Scopus subject areas

  • Computer Science Applications
  • Management Science and Operations Research

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