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An O(Tˆ3) algorithm for the capacitated lot sizing problem with minimum order quantities

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  • Okhrin, Irena
  • Richter, Knut

Abstract

This paper explores a single-item capacitated lot sizing problem with minimum order quantity, which plays the role of minor set-up cost. We work out the necessary and suffcient solvability conditions and apply the general dynamic programming technique to develop an O(T³) exact algorithm that is based on the concept of minimal sub-problems. An investigation of the properties of the optimal solution structure allows us to construct explicit solutions to the obtained sub-problems and prove their optimality. In this way, we reduce the complexity of the algorithm considerably and confirm its efficiency in an extensive computational study.

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  • Okhrin, Irena & Richter, Knut, 2010. "An O(Tˆ3) algorithm for the capacitated lot sizing problem with minimum order quantities," Discussion Papers 284, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    • Handle: RePEc:zbw:euvwdp:284
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    Cited by:

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    2. Ou, Jinwen, 2017. "Improved exact algorithms to economic lot-sizing with piecewise linear production costs," European Journal of Operational Research, Elsevier, vol. 256(3), pages 777-784.
    3. Hellion, Bertrand & Mangione, Fabien & Penz, Bernard, 2012. "A polynomial time algorithm to solve the single-item capacitated lot sizing problem with minimum order quantities and concave costs," European Journal of Operational Research, Elsevier, vol. 222(1), pages 10-16.
    4. Brahimi, Nadjib & Absi, Nabil & Dauzère-Pérès, Stéphane & Nordli, Atle, 2017. "Single-item dynamic lot-sizing problems: An updated survey," European Journal of Operational Research, Elsevier, vol. 263(3), pages 838-863.
    5. Muriel, Ana & Chugh, Tammana & Prokle, Michael, 2022. "Efficient algorithms for the joint replenishment problem with minimum order quantities," European Journal of Operational Research, Elsevier, vol. 300(1), pages 137-150.
    6. Sazvar, Z. & Mirzapour Al-e-hashem, S.M.J. & Govindan, K. & Bahli, B., 2016. "A novel mathematical model for a multi-period, multi-product optimal ordering problem considering expiry dates in a FEFO system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 232-261.
    7. Chung-Lun Li & Qingying Li, 2016. "Polynomial-Time Solvability of Dynamic Lot Size Problems," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 33(03), pages 1-20, June.
    8. Chen, Yujing & Zhong, Yuanguang & Cheng, T.C.E., 2023. "Impacts of the minimum quantity contract on an online retail platform," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1236-1247.
    9. Hong, Zhaofu & Chu, Chengbin & Yu, Yugang, 2016. "Dual-mode production planning for manufacturing with emission constraints," European Journal of Operational Research, Elsevier, vol. 251(1), pages 96-106.
    10. Ou, Jinwen & Feng, Jiejian, 2019. "Production lot-sizing with dynamic capacity adjustment," European Journal of Operational Research, Elsevier, vol. 272(1), pages 261-269.
    11. Zhu, Han & Liu, Xing & Chen, Youhua (Frank), 2015. "Effective inventory control policies with a minimum order quantity and batch ordering," International Journal of Production Economics, Elsevier, vol. 168(C), pages 21-30.
    12. Absi, Nabil & Dauzère-Pérès, Stéphane & Kedad-Sidhoum, Safia & Penz, Bernard & Rapine, Christophe, 2016. "The single-item green lot-sizing problem with fixed carbon emissions," European Journal of Operational Research, Elsevier, vol. 248(3), pages 849-855.
    13. Froese, Sarah & Kunz, Nadja C. & Ramana, M.V., 2020. "Too small to be viable? The potential market for small modular reactors in mining and remote communities in Canada," Energy Policy, Elsevier, vol. 144(C).
    14. Esra Koca & Hande Yaman & M. Selim Aktürk, 2014. "Lot Sizing with Piecewise Concave Production Costs," INFORMS Journal on Computing, INFORMS, vol. 26(4), pages 767-779, November.

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    Keywords

    production planning; capacitated lot sizing problem; single item; minimum order quantities; capacity constraints; dynamic programming;
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