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.

Algebra, Cost parameters, Costs, Heuristic methods, Heuristics, Holding cost bound, Lot-sizing, Lot-sizing problems, Optimal solutions, Set-up costs, Time invariants
dx.doi.org/10.1016/j.orl.2008.12.006, hdl.handle.net/1765/18357
ERIM Article Series (EAS) , Econometric Institute Reprint Series
Operations Research Letters
Erasmus Research Institute of Management

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