Improved algorithms for a lot-sizing problem with inventory bounds and backlogging

Authors

  • Hark-Chin Hwang,

    Corresponding author
    1. Department of Industrial Engineering, Chosun University, 375 Seosuk-Dong, Dong-Gu, Gwangju 501-759, Republic of Korea
    • Department of Industrial Engineering, Chosun University, 375 Seosuk-Dong, Dong-Gu, Gwangju 501-759, Republic of Korea
    Search for more papers by this author
  • Wilco van den Heuvel

    1. Econometric Institute and Erasmus Research Institute of Management, Erasmus University Rotterdam, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands
    Search for more papers by this author

Abstract

This article considers a dynamic lot-sizing problem with storage capacity limitation in which backlogging is allowed. For general concave procurement and inventory costs, we present an O(T2) dynamic programming algorithm where T is the length of the planning horizon. Furthermore, in case of a fixed-charge cost structure without speculative motives, we show that the problem can be solved in O(T) time. By carefully choosing decompositions of the problems, we can use classical results like an efficient matrix searching algorithm and geometric techniques to achieve the results. © 2012 Wiley Periodicals, Inc. Naval Research Logistics, 2012

Ancillary