Solving the capacitated lot-sizing problem with backorder consideration

C H Cheng (), M S Madan, Y Gupta and S So
Additional contact information
C H Cheng: The Chinese University of Hong Kong
M S Madan: University of Wisconsin at Whitewater
Y Gupta: University of Washington at Seattle
S So: Hong Kong Hospital Authority

Journal of the Operational Research Society, 2001, vol. 52, issue 8, 952-959

Abstract: Abstract In this research, we formulate and solve a type of the capacitated lot-sizing problem. We present a general model for the lot-sizing problem with backorder options, that can take into consideration various types of production capacities such as regular time, overtime and subcontracting. The objective is to determine lot sizes that will minimize the sum of setup costs, holding cost, backorder cost, regular time production costs, and overtime production costs, subject to resource constraints. Most existing formulations for the problem consider the special case of the problem where a single source of production capacity is considered. However, allowing for the use of alternate capacities such as overtime is quite common in many manufacturing settings. Hence, we provide a formulation that includes consideration of multiple sources of production capacity. We develop a heuristic based on the special structure of fixed charge transportation problem. The performance of our algorithm is evaluated by comparing the heuristic solution value to lower bound value. Extensive computational results are presented.

Keywords: capacitated lot-sizing; single level constrained resource; backorder (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1057/palgrave.jors.2601166 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jorsoc:v:52:y:2001:i:8:d:10.1057_palgrave.jors.2601166

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/41274

DOI: 10.1057/palgrave.jors.2601166

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald and Jonathan Crook

More articles in Journal of the Operational Research Society from Palgrave Macmillan, The OR Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().