Template-Type: ReDIF-Paper 1.0 Author-Name: Lee, C.Y. Author-Name-Last: Lee Author-Name-First: Chung-Yee Author-Name: Cetinkaya, S. Author-Name-Last: Cetinkaya Author-Name: Wagelmans, A.P.M. Author-Name-Last: Wagelmans Author-Name-First: Albert Title: A dynamic lot-sizing model with demand time windows Abstract: One of the basic assumptions of the classical dynamic lot-sizing model is that the aggregate demand of a given period must be satisfied in that period. Under this assumption, if backlogging is not allowed then the demand of a given period cannot be delivered earlier or later than the period. If backlogging is allowed, the demand of a given period cannot be delivered earlier than the period, but can be delivered later at the expense of a backordering cost. Like most mathematical models, the classical dynamic lot-sizing model is a simplified paraphrase of what might actually happen in real life. In most real life applications, the customer offers a grace period - we call it a demand time window - during which a particular demand can be satisfied with no penalty. That is, in association with each demand, the customer specifies an earliest and a latest delivery time. The time interval characterized by the earliest and latest delivery dates of a demand represents the corresponding time window. This paper studies the dynamic lot-sizing problem with demand time windows and provides polynomial time algorithms for computing its solution. If shortages are not allowed, the complexity of the proposed algorithm is of the order T square. When backlogging is allowed, the complexity of the proposed algorithm is of the order T cube. Creation-Date: 1999-12-08 File-URL: https://repub.eur.nl/pub/1620/1_feweco19991208101453.pdf File-Format: application/pdf Series: RePEc:ems:eureir Number: EI 9948-/A Keywords: dynamic programming, lot-sizing, time windows Handle: RePEc:ems:eureir:1620