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Lot-sizing with fixed charges on stocks: the convex hull

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  • VAN VYVE, Mathieu
  • ORTEGA, Francisco

Abstract

In this paper we examine a variant of the uncapacitated lot-sizing model of Wagner-Whitin that includes fixed charges on the stocks. Such a model is natural in a production environment where stocking is a complex operation. The problem can also be seen as a single source uncapacitated fixed charge network flow problem on a simple graph. Extended formulations, a dynamic program, the convex hull of integer solutions and a separation algorithm are presented. All these turn out to be very natural extensions of the corresponding results of Barany, Van Roy and Wolsey [?] for the uncapacitated lot-sizing problem. The convex hull proof is based on showing that an extended facility location formulation is tight and by pro jecting it onto the original space of variables.

Suggested Citation

  • VAN VYVE, Mathieu & ORTEGA, Francisco, 2003. "Lot-sizing with fixed charges on stocks: the convex hull," LIDAM Discussion Papers CORE 2003014, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2003014
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    Citations

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    Cited by:

    1. Alper Atamtürk & Simge Küçükyavuz, 2005. "Lot Sizing with Inventory Bounds and Fixed Costs: Polyhedral Study and Computation," Operations Research, INFORMS, vol. 53(4), pages 711-730, August.
    2. Jans, Raf & Degraeve, Zeger, 2007. "Meta-heuristics for dynamic lot sizing: A review and comparison of solution approaches," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1855-1875, March.

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