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Valid inequalities for the single-item capacitated lot sizing problem with step-wise costs

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  • Akbalik, A.
  • Pochet, Y.

Abstract

This paper presents a new class of valid inequalities for the single-item capacitated lot sizing problem with step-wise production costs (LS-SW). Constant sized batch production is carried out with a limited production capacity in order to satisfy the customer demand over a finite horizon. A new class of valid inequalities we call mixed flow cover, is derived from the existing integer flow cover inequalities by a lifting procedure. The lifting coefficients are sequence independent when the batch sizes (V) and the production capacities (P) are constant and when V divides P. When the restriction of the divisibility is removed, the lifting coefficients are shown to be sequence independent. We identify some cases where the mixed flow cover inequalities are facet defining. We propose a cutting plane algorithm for different classes of valid inequalities introduced in the paper. The exact separation algorithm proposed for the constant capacitated case runs in polynomial time. Computational results show the efficiency of the new class mixed flow cover compared to the existing methods.

Suggested Citation

  • Akbalik, A. & Pochet, Y., 2009. "Valid inequalities for the single-item capacitated lot sizing problem with step-wise costs," European Journal of Operational Research, Elsevier, vol. 198(2), pages 412-434, October.
    • Handle: RePEc:eee:ejores:v:198:y:2009:i:2:p:412-434
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    References listed on IDEAS

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    2. Attila, Öykü Naz & Agra, Agostinho & Akartunalı, Kerem & Arulselvan, Ashwin, 2021. "Robust formulations for economic lot-sizing problem with remanufacturing," European Journal of Operational Research, Elsevier, vol. 288(2), pages 496-510.
    3. Akbalik, Ayse & Penz, Bernard, 2009. "Exact methods for single-item capacitated lot sizing problem with alternative machines and piece-wise linear production costs," International Journal of Production Economics, Elsevier, vol. 119(2), pages 367-379, June.
    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. 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.
    6. Chung‐Lun Li & Jinwen Ou & Vernon N. Hsu, 2012. "Dynamic lot sizing with all‐units discount and resales," Naval Research Logistics (NRL), John Wiley & Sons, vol. 59(3‐4), pages 230-243, April.
    7. Farhat, Mlouka & Akbalik, Ayse & Hadj-Alouane, Atidel B. & Sauer, Nathalie, 2019. "Lot sizing problem with batch ordering under periodic buyback contract and lost sales," International Journal of Production Economics, Elsevier, vol. 208(C), pages 500-511.
    8. Akbalik, Ayse & Hadj-Alouane, Atidel B. & Sauer, Nathalie & Ghribi, Houcem, 2017. "NP-hard and polynomial cases for the single-item lot sizing problem with batch ordering under capacity reservation contract," European Journal of Operational Research, Elsevier, vol. 257(2), pages 483-493.
    9. Akbalik, Ayse & Rapine, Christophe, 2018. "Lot sizing problem with multi-mode replenishment and batch delivery," Omega, Elsevier, vol. 81(C), pages 123-133.
    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. Syed Ali, Sharifah Aishah & Doostmohammadi, Mahdi & Akartunalı, Kerem & van der Meer, Robert, 2018. "A theoretical and computational analysis of lot-sizing in remanufacturing with separate setups," International Journal of Production Economics, Elsevier, vol. 203(C), pages 276-285.
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