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The economic lot scheduling problem with finite backorder costs

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  • Guillermo Gallego
  • Robin Roundy

Abstract

We are concerned with the problem of scheduling m items, facing constant demand rates, on a single facility to minimize the long‐run average holding, backorder, and setup costs. The inventory holding and backlogging costs are charged at a linear time weighted rate. We develop a lower bound on the cost of all feasible schedules and extend recent developments in the economic lot scheduling problem, via time‐varying lot sizes, to find optimal or near‐optimal cyclic schedules. The resulting schedules are used elsewhere as target schedules when demands are random. © 1992 John Wiley & Sons, Inc.

Suggested Citation

  • Guillermo Gallego & Robin Roundy, 1992. "The economic lot scheduling problem with finite backorder costs," Naval Research Logistics (NRL), John Wiley & Sons, vol. 39(5), pages 729-739, August.
    • Handle: RePEc:wly:navres:v:39:y:1992:i:5:p:729-739
    DOI: 10.1002/1520-6750(199208)39:53.0.CO;2-N
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    References listed on IDEAS

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    1. Gregory Dobson, 1987. "The Economic Lot-Scheduling Problem: Achieving Feasibility Using Time-Varying Lot Sizes," Operations Research, INFORMS, vol. 35(5), pages 764-771, October.
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    8. Earl E. Bomberger, 1966. "A Dynamic Programming Approach to a Lot Size Scheduling Problem," Management Science, INFORMS, vol. 12(11), pages 778-784, July.
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    10. Harry Markowitz, 1956. "The optimization of a quadratic function subject to linear constraints," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 3(1‐2), pages 111-133, March.
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    Cited by:

    1. Oner, Selma & Bilgic, Taner, 2008. "Economic lot scheduling with uncontrolled co-production," European Journal of Operational Research, Elsevier, vol. 188(3), pages 793-810, August.
    2. Tang, Loon Ching & Lee, Loo Hay, 2005. "A simple recovery strategy for economic lot scheduling problem: A two-product case," International Journal of Production Economics, Elsevier, vol. 98(1), pages 97-107, October.
    3. Guillermo Gallego & Ilkyeong Moon, 1995. "Strategic investment to reduce setup times in the economic lot scheduling problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(5), pages 773-790, August.
    4. Holmbom, Martin & Segerstedt, Anders, 2014. "Economic Order Quantities in production: From Harris to Economic Lot Scheduling Problems," International Journal of Production Economics, Elsevier, vol. 155(C), pages 82-90.
    5. Khoury, B. N. & Abboud, N. E. & Tannous, M. M., 2001. "The common cycle approach to the ELSP problem with insufficient capacity," International Journal of Production Economics, Elsevier, vol. 73(2), pages 189-199, September.

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