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Joint optimization of dynamic lot and warehouse sizing problems

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  • Fan, Jie
  • Wang, Guoqing

Abstract

We consider an integrated model of inventory and warehousing decisions for a single product. In this model, dynamic lot size decisions are considered under constraints of the warehouse size that can be either increased or decreased at the beginning of each period. The ordering cost is typically a fixed cost and the holding cost is assumed to be a linear function. Each adjustment of the warehouse size incurs a fixed-plus-linear adjustment cost. A lease cost has to be paid for the warehouse size in each period. We provide an efficient algorithm to solve the problem. Further, we present computational experiments that show the efficiency of the algorithm and the effectiveness of the model.

Suggested Citation

  • Fan, Jie & Wang, Guoqing, 2018. "Joint optimization of dynamic lot and warehouse sizing problems," European Journal of Operational Research, Elsevier, vol. 267(3), pages 849-854.
    • Handle: RePEc:eee:ejores:v:267:y:2018:i:3:p:849-854
    DOI: 10.1016/j.ejor.2017.12.019
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    References listed on IDEAS

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    Cited by:

    1. Shi, Ye & Yu, Yugang & Dong, Yuxuan, 2021. "Warehousing platform’s revenue management: A dynamic model of coordinating space allocation for self-use and rent," European Journal of Operational Research, Elsevier, vol. 293(1), pages 167-176.
    2. José M. Gutiérrez & Beatriz Abdul-Jalbar & Joaquín Sicilia & Inmaculada Rodríguez-Martín, 2021. "Effective Algorithms for the Economic Lot-Sizing Problem with Bounded Inventory and Linear Fixed-Charge Cost Structure," Mathematics, MDPI, vol. 9(6), pages 1-21, March.
    3. Aghajani, Mojtaba & Ali Torabi, S. & Altay, Nezih, 2023. "Resilient relief supply planning using an integrated procurement-warehousing model under supply disruption," Omega, Elsevier, vol. 118(C).
    4. Yajaira Cardona-Valdés & Samuel Nucamendi-Guillén & Rodrigo E. Peimbert-García & Gustavo Macedo-Barragán & Eduardo Díaz-Medina, 2020. "A New Formulation for the Capacitated Lot Sizing Problem with Batch Ordering Allowing Shortages," Mathematics, MDPI, vol. 8(6), pages 1-16, June.
    5. Jackson, Jonathan E. & Munson, Charles L., 2019. "Common replenishment cycle order policies for multiple products with capacity expansion opportunities and quantity discounts," International Journal of Production Economics, Elsevier, vol. 218(C), pages 170-184.

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