Lot Sizing with Inventory Bounds and Fixed Costs: Polyhedral Study and Computation

Alper Atamtürk () and Simge Küçükyavuz ()
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Alper Atamtürk: Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94720–1777
Simge Küçükyavuz: Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94720–1777

Operations Research, 2005, vol. 53, issue 4, 711-730

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.

Keywords: lot sizing; facets; separation algorithms; computation (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (1)

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