A holding cost bound for the economic lot-sizing problem with time-invariant cost parameters
We show that in an optimal solution of the economic lot-sizing problem the total holding cost in an order interval is bounded from above by a quantity proportional to the setup cost and the logarithm of the number of periods in the interval. We present two applications of this result.
|Keywords||Algebra, Cost parameters, Costs, Heuristic methods, Heuristics, Holding cost bound, Lot-sizing, Lot-sizing problems, Optimal solutions, Set-up costs, Time invariants|
|Persistent URL||dx.doi.org/10.1016/j.orl.2008.12.006, hdl.handle.net/1765/18357|
|Series||ERIM Article Series (EAS) , Econometric Institute Reprint Series|
|Journal||Operations Research Letters|
van den Heuvel, W, & Wagelmans, A.P.M. (2009). A holding cost bound for the economic lot-sizing problem with time-invariant cost parameters. Operations Research Letters, 37(2), 102–106. doi:10.1016/j.orl.2008.12.006