Dynamic lot sizing problem with section storage capacity decisions

FAN Jie, WANG Guoqing

Systems Engineering - Theory & Practice ›› 2017, Vol. 37 ›› Issue (10) : 2592-2599.

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Systems Engineering - Theory & Practice ›› 2017, Vol. 37 ›› Issue (10) : 2592-2599. DOI: 10.12011/1000-6788(2017)10-2592-08

Dynamic lot sizing problem with section storage capacity decisions

  • FAN Jie, WANG Guoqing
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Abstract

A single item dynamic lot sizing problem integrated with storage capacity and inventory decisions is considered. Given a T-periods planning horizon being partitioned into a series of sections, storage capacity decisions are made at the beginning of each section, and the ending inventory of each period is limited by the storage capacity of section containing it. Assume that section storage capacity cost is a non-decreasing function, ordering cost is a fixed charge, and holding cost is a linear function. By applying decomposition techniques and geometric techniques, an O(T3) algorithm is presented. Comparing with commercial MIP solver, the saving in computation times of this algorithm is excellent.

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dynamic lot sizing / storage capacity plan / computational complexity

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FAN Jie , WANG Guoqing. Dynamic lot sizing problem with section storage capacity decisions. Systems Engineering - Theory & Practice, 2017, 37(10): 2592-2599 https://doi.org/10.12011/1000-6788(2017)10-2592-08

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Funding

This research was supported in part by the Institute of Enterprise Development of Jinan University.
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