Template-Type: ReDIF-Paper 1.0
Author-Name: van den Heuvel, W.
Author-Name-Last: van den Heuvel
Author-Name-First: Wilco
Author-Person: pva62
Author-Name: Wagelmans, A.P.M.
Author-Name-Last: Wagelmans
Author-Name-First: Albert
Title: A Geometric Algorithm to solve the NI/G/NI/ND Capacitated Lot-Sizing Problem in O(T^2) Time
Abstract: In this paper we consider the capacitated lot-sizing problem (CLSP) with linear costs. It is known that this problem is NP-hard, but there exist special cases that can be solved in polynomial time. We derive a backward algorithm, based on the forward algorithm by Chen et al. (1994), to solve the general CLSP. By adapting this backward algorithm, we arrive at a new O(T^2) algorithm for the CLSP with non-increasing setup cost, general holding cost, non-increasing production cost and non-decreasing capacities over time. Numerical tests show the superior performance of our algorithm compared to the algorithm proposed by Chung and Lin (1988). We also analyze why this is the case.
Creation-Date: 2003-09-25
File-URL: https://repub.eur.nl/pub/930/ERS-2003-066-LIS.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2003-066-LIS
Classification-JEL: L11, M, M11, R4
Keywords: capacitated lot-sizing problem, inventory, production
Handle: RePEc:ems:eureri:930