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An efficient algorithm for the 2-level capacitated lot-sizing problem with identical capacities at both levels

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  • Goisque, Guillaume
  • Rapine, Christophe

Abstract

We present a polynomial time algorithm for solving the 2-level production-in-series lot-sizing problem with capacities at both levels. At each level, we consider a fixed setup cost together with linear production and holding costs. We assume that capacities are stationary and identical at both levels. We introduce a new cost structure, called path non-speculative, generalizing the classical non-speculative cost structure. We show that under this cost structure the problem can be solved in time complexity O(T5), where T is the number of periods of the planning horizon. When the cost structure follows the classical non-speculative motives, the time complexity is reduced to O(T3).

Suggested Citation

  • Goisque, Guillaume & Rapine, Christophe, 2017. "An efficient algorithm for the 2-level capacitated lot-sizing problem with identical capacities at both levels," European Journal of Operational Research, Elsevier, vol. 261(3), pages 918-928.
    • Handle: RePEc:eee:ejores:v:261:y:2017:i:3:p:918-928
    DOI: 10.1016/j.ejor.2017.02.024
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    References listed on IDEAS

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