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Lot sizing problem with multi-mode replenishment and batch delivery

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  • Akbalik, Ayse
  • Rapine, Christophe

Abstract

We study the single-item uncapacitated lot sizing problem with multi-mode replenishment and batch deliveries (ULS-MMB). Specifically, we consider that each replenishment mode has a Full Truck Load (FTL) cost structure and incurs a fixed ordering cost plus a fixed cost per batch. This problem arises in practice when a retailer places the order with different suppliers in each period. We show that this problem is NP-hard even for a single period and under very restricted cost parameters. We then show that ULS-MMB can be transformed into a lot sizing problem with only one replenishment mode per period, that is, ULS-MMB is a special case of lot-sizing with time-varying batch sizes. This simple observation allows us to improve some results already known in the literature of multi-mode replenishment. We propose a very efficient 2-approximation algorithm and establish that the problem admits an FPTAS. Finally, we show that the problem restricted to two modes with divisible batch sizes can be solved in polynomial time.

Suggested Citation

  • Akbalik, Ayse & Rapine, Christophe, 2018. "Lot sizing problem with multi-mode replenishment and batch delivery," Omega, Elsevier, vol. 81(C), pages 123-133.
    • Handle: RePEc:eee:jomega:v:81:y:2018:i:c:p:123-133
    DOI: 10.1016/j.omega.2017.10.005
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    References listed on IDEAS

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    1. Albert Wagelmans & Stan van Hoesel & Antoon Kolen, 1992. "Economic Lot Sizing: An O(n log n) Algorithm That Runs in Linear Time in the Wagner-Whitin Case," Operations Research, INFORMS, vol. 40(1-supplem), pages 145-156, February.
    2. Chung-Lun Li & Vernon Ning Hsu & Wen-Qiang Xiao, 2004. "Dynamic Lot Sizing with Batch Ordering and Truckload Discounts," Operations Research, INFORMS, vol. 52(4), pages 639-654, August.
    3. Ng, C.T. & Kovalyov, Mikhail Y. & Cheng, T.C.E., 2010. "A simple FPTAS for a single-item capacitated economic lot-sizing problem with a monotone cost structure," European Journal of Operational Research, Elsevier, vol. 200(2), pages 621-624, January.
    4. C. P. M. van Hoesel & A. P. M. Wagelmans, 2001. "Fully Polynomial Approximation Schemes for Single-Item Capacitated Economic Lot-Sizing Problems," Mathematics of Operations Research, INFORMS, vol. 26(2), pages 339-357, May.
    5. Akbalik, A. & Pochet, Y., 2009. "Valid inequalities for the single-item capacitated lot sizing problem with step-wise costs," European Journal of Operational Research, Elsevier, vol. 198(2), pages 412-434, October.
    6. Mansini, Renata & Savelsbergh, Martin W.P. & Tocchella, Barbara, 2012. "The supplier selection problem with quantity discounts and truckload shipping," Omega, Elsevier, vol. 40(4), pages 445-455.
    7. Akbalik, Ayse & Rapine, Christophe, 2013. "The single item uncapacitated lot-sizing problem with time-dependent batch sizes: NP-hard and polynomial cases," European Journal of Operational Research, Elsevier, vol. 229(2), pages 353-363.
    8. Mathieu Van Vyve, 2007. "Algorithms for Single-Item Lot-Sizing Problems with Constant Batch Size," Mathematics of Operations Research, INFORMS, vol. 32(3), pages 594-613, August.
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    Cited by:

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    2. Yang, Liu & Liu, Kanglin & Zhang, Juan & Zelbst, Pamela J., 2024. "Inventory management with actual palletized transportation costs and lost sales," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 184(C).
    3. Engebrethsen, Erna & Dauzère-Pérès, Stéphane, 2019. "Transportation mode selection in inventory models: A literature review," European Journal of Operational Research, Elsevier, vol. 279(1), pages 1-25.
    4. Farhat, Mlouka & Akbalik, Ayse & Hadj-Alouane, Atidel B. & Sauer, Nathalie, 2019. "Lot sizing problem with batch ordering under periodic buyback contract and lost sales," International Journal of Production Economics, Elsevier, vol. 208(C), pages 500-511.
    5. Gökçe Palak & Sandra Duni Ekşioğlu & Joseph Geunes, 2018. "Heuristic algorithms for inventory replenishment with perishable products and multiple transportation modes," IISE Transactions, Taylor & Francis Journals, vol. 50(4), pages 345-365, April.

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