A geometric algorithm to solve the NI/G/NI/ND capacitated lot-sizing problem in O(T2) time

Wilco van den Heuvel and Albert Wagelmans

No EI 2003-24, Econometric Institute Research Papers from Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute

Abstract: In this paper we consider the capacitated lot-sizing problem (CLSP) with linear costs. It is known that this problem is NP-hard, but there exist special cases that can be solved in polynomial time. The purpose of this paper is twofold. First, we derive a backward algorithm based on the forward algorithm by Chen et al. (1994), which solves the general CLSP. We give a problem instances that requires exponential running time using the backward algo- rithm. Second, we provide a new O(T2) algorithm for the CLSP with non-increasing setup cost, general holding cost, non-increasing production cost and non-decreasing capacities over time. This is done by adapting the backward algorithm. Numerical tests show the better performance of our algorithm compared to the algorithm proposed by Chung and Lin (1988).

Keywords: capacitated lot-sizing problem; inventory; production (search for similar items in EconPapers)
Date: 2003-01-01
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Citations: View citations in EconPapers (1)

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Working Paper: A Geometric Algorithm to solve the NI/G/NI/ND Capacitated Lot-Sizing Problem in O(T^2) Time (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:ems:eureir:18017

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