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The Replenishment Schedule to Minimize Peak Storage Problem: The Gap Between the Continuous and Discrete Versions of the Problem

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  • Dorit S. Hochbaum

    (Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94709)

  • Xu Rao

    (Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94709)

Abstract

The replenishment storage problem (RSP) is to minimize the storage capacity requirement for a deterministic demand, multi-item inventory system, where each item has a given reorder size and cycle length. We consider the discrete RSP, where reorders can only take place at an integer time unit within the cycle. Discrete RSP was shown to be NP-hard for constant joint cycle length (the least common multiple of the length of all individual cycles). We show here that discrete RSP is weakly NP-hard for constant joint cycle length and prove that it is strongly NP-hard for nonconstant joint cycle length. For constant joint cycle-length discrete RSP, we further present a pseudopolynomial time algorithm that solves the problem optimally and the first known fully polynomial time approximation scheme (FPTAS) for the single-cycle RSP. The scheme is utilizing a new integer programming formulation of the problem that is introduced here. For the strongly NP-hard RSP with nonconstant joint cycle length, we provide a polynomial time approximation scheme (PTAS), which for any fixed ɛ , provides a linear time ɛ approximate solution. The continuous RSP, where reorders can take place at any time within a cycle, seems (with our results) to be easier than the respective discrete problem. We narrow the previously known complexity gap between the continuous and discrete versions of RSP for the multi-cycle RSP (with either constant or nonconstant cycle length) and the single-cycle RSP with constant cycle length and widen the gap for single-cycle RSP with nonconstant cycle length. For the multi-cycle case and constant joint cycle length, the complexity status of continuous RSP is open, whereas it is proved here that the discrete RSP is weakly NP-hard. Under our conjecture that the continuous RSP is easier than the discrete one, this implies that continuous RSP on multi-cycle and constant joint cycle length (currently of unknown complexity status) is at most weakly NP-hard.

Suggested Citation

  • Dorit S. Hochbaum & Xu Rao, 2019. "The Replenishment Schedule to Minimize Peak Storage Problem: The Gap Between the Continuous and Discrete Versions of the Problem," Operations Research, INFORMS, vol. 67(5), pages 1345-1361, September.
    • Handle: RePEc:inm:oropre:v:67:y:2019:i:5:p:1345-1361
    DOI: opre.2018.1839
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    References listed on IDEAS

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