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Economic lot sizing with constant capacities and concave inventory costs

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  • Jinwen Ou

Abstract

This article studies the classical single‐item economic lot‐sizing problem with constant capacities, fixed‐plus‐linear order costs, and concave inventory costs, where backlogging is allowed. We propose an O(T3) optimal algorithm for the problem, which improves upon the O(T4) running time of the famous algorithm developed by Florian and Klein (Manage Sci18 (1971) 12–20). Instead of using the standard dynamic programming approach by predetermining the minimal cost for every possible subplan, we develop a backward dynamic programming algorithm to obtain a more efficient implementation. © 2012 Wiley Periodicals, Inc. Naval Research Logistics, 2012

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  • Jinwen Ou, 2012. "Economic lot sizing with constant capacities and concave inventory costs," Naval Research Logistics (NRL), John Wiley & Sons, vol. 59(7), pages 497-501, October.
    • Handle: RePEc:wly:navres:v:59:y:2012:i:7:p:497-501
    DOI: 10.1002/nav.21504
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    References listed on IDEAS

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    1. Willard I. Zangwill, 1969. "A Backlogging Model and a Multi-Echelon Model of a Dynamic Economic Lot Size Production System--A Network Approach," Management Science, INFORMS, vol. 15(9), pages 506-527, May.
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    5. Awi Federgruen & Michal Tzur, 1991. "A Simple Forward Algorithm to Solve General Dynamic Lot Sizing Models with n Periods in 0(n log n) or 0(n) Time," Management Science, INFORMS, vol. 37(8), pages 909-925, August.
    6. Alok Aggarwal & James K. Park, 1993. "Improved Algorithms for Economic Lot Size Problems," Operations Research, INFORMS, vol. 41(3), pages 549-571, June.
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    Cited by:

    1. Önal, Mehmet & van den Heuvel, Wilco & Dereli, Meryem Merve & Albey, Erinç, 2023. "Economic lot sizing problem with tank scheduling," European Journal of Operational Research, Elsevier, vol. 308(1), pages 166-182.
    2. Ou, Jinwen & Feng, Jiejian, 2019. "Production lot-sizing with dynamic capacity adjustment," European Journal of Operational Research, Elsevier, vol. 272(1), pages 261-269.

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