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.

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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
Citation
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