IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v198y2009i2p412-434.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377-2217(08)00743-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dong X. Shaw & Albert P. M. Wagelmans, 1998. "An Algorithm for Single-Item Capacitated Economic Lot Sizing with Piecewise Linear Production Costs and General Holding Costs," Management Science, INFORMS, vol. 44(6), pages 831-838, June.
    2. GÜNLÜK, Oktay & POCHET, Yves, 2001. "Mixing mixed-integer inequalities," LIDAM Reprints CORE 1504, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Moustapha Diaby & Alain Martel, 1993. "Dynamic Lot Sizing for Multi-Echelon Distribution Systems with Purchasing and Transportation Price Discounts," Operations Research, INFORMS, vol. 41(1), pages 48-59, February.
    4. Steven A. Lippman, 1969. "Optimal Inventory Policy with Multiple Set-Up Costs," Management Science, INFORMS, vol. 16(1), pages 118-138, September.
    5. Lap Mui Ann Chan & Ana Muriel & Zuo-Jun Shen & David Simchi-Levi, 2002. "On the Effectiveness of Zero-Inventory-Ordering Policies for the Economic Lot-Sizing Model with a Class of Piecewise Linear Cost Structures," Operations Research, INFORMS, vol. 50(6), pages 1058-1067, December.
    6. LOUVEAUX, Quentin & WOLSEY, Laurence, 2003. "Lifting, superadditivity, mixed integer rounding and single node flow sets revisited," LIDAM Discussion Papers CORE 2003001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Chung-Lun Li & Vernon Ning Hsu & Wen-Qiang Xiao, 2004. "Dynamic Lot Sizing with Batch Ordering and Truckload Discounts," Operations Research, INFORMS, vol. 52(4), pages 639-654, August.
    8. LOUVEAUX, Quentin & WOLSEY, Laurence A., 2003. "Lifting, superadditivity, mixed integer rounding and single node flow sets revisited," LIDAM Reprints CORE 1659, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. POCHET, Yves & WOLSEY, Laurence A., 1993. "Lot-sizing with constant batches: formulation and valid inequalities," LIDAM Reprints CORE 1066, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. Cary Swoveland, 1975. "A Deterministic Multi-Period Production Planning Model with Piecewise Concave Production and Holding-Backorder Costs," Management Science, INFORMS, vol. 21(9), pages 1007-1013, May.
    11. Brahimi, Nadjib & Dauzere-Peres, Stephane & Najid, Najib M. & Nordli, Atle, 2006. "Single item lot sizing problems," European Journal of Operational Research, Elsevier, vol. 168(1), pages 1-16, January.
    12. Chung-Yee Lee & Sila Çetinkaya & Wikrom Jaruphongsa, 2003. "A Dynamic Model for Inventory Lot Sizing and Outbound Shipment Scheduling at a Third-Party Warehouse," Operations Research, INFORMS, vol. 51(5), pages 735-747, October.
    13. M. W. Padberg & T. J. Van Roy & L. A. Wolsey, 1985. "Valid Linear Inequalities for Fixed Charge Problems," Operations Research, INFORMS, vol. 33(4), pages 842-861, August.
    14. Yves Pochet & Laurence A. Wolsey, 1993. "Lot-Sizing with Constant Batches: Formulation and Valid Inequalities," Mathematics of Operations Research, INFORMS, vol. 18(4), pages 767-785, November.
    15. M. Florian & J. K. Lenstra & A. H. G. Rinnooy Kan, 1980. "Deterministic Production Planning: Algorithms and Complexity," Management Science, INFORMS, vol. 26(7), pages 669-679, July.
    16. Padberg, M.W. & Van Roy, T.J. & Wolsey, L.A., 1985. "Valid linear inequalities for fixed charge problems," LIDAM Reprints CORE 656, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Akbalik, Ayse & Rapine, Christophe, 2013. "The single item uncapacitated lot-sizing problem with time-dependent batch sizes: NP-hard and polynomial cases," European Journal of Operational Research, Elsevier, vol. 229(2), pages 353-363.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Akbalik, Ayse & Rapine, Christophe, 2018. "Lot sizing problem with multi-mode replenishment and batch delivery," Omega, Elsevier, vol. 81(C), pages 123-133.
    7. 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.
    8. Ou, Jinwen & Feng, Jiejian, 2019. "Production lot-sizing with dynamic capacity adjustment," European Journal of Operational Research, Elsevier, vol. 272(1), pages 261-269.
    9. 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.
    10. 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.
    11. 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.
    12. Esteban Inga & Roberto Hincapié & Sandra Céspedes, 2019. "Capacitated Multicommodity Flow Problem for Heterogeneous Smart Electricity Metering Communications Using Column Generation," Energies, MDPI, vol. 13(1), pages 1-21, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. 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.
    4. Jans, R.F. & Degraeve, Z., 2005. "Modeling Industrial Lot Sizing Problems: A Review," ERIM Report Series Research in Management ERS-2005-049-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    5. 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.
    6. Hark-Chin Hwang, 2009. "Inventory Replenishment and Inbound Shipment Scheduling Under a Minimum Replenishment Policy," Transportation Science, INFORMS, vol. 43(2), pages 244-264, May.
    7. Chung-Lun Li & Vernon Ning Hsu & Wen-Qiang Xiao, 2004. "Dynamic Lot Sizing with Batch Ordering and Truckload Discounts," Operations Research, INFORMS, vol. 52(4), pages 639-654, August.
    8. Absi, Nabil & Kedad-Sidhoum, Safia, 2008. "The multi-item capacitated lot-sizing problem with setup times and shortage costs," European Journal of Operational Research, Elsevier, vol. 185(3), pages 1351-1374, March.
    9. Yue Jin & Ana Muriel, 2009. "Single‐warehouse multi‐retailer inventory systems with full truckload shipments," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(5), pages 450-464, August.
    10. 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.
    11. Akbalik, Ayse & Rapine, Christophe, 2013. "The single item uncapacitated lot-sizing problem with time-dependent batch sizes: NP-hard and polynomial cases," European Journal of Operational Research, Elsevier, vol. 229(2), pages 353-363.
    12. Jans, Raf & Degraeve, Zeger, 2007. "Meta-heuristics for dynamic lot sizing: A review and comparison of solution approaches," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1855-1875, March.
    13. Hwang, Hark-Chin & Kang, Jangha, 2016. "Two-phase algorithm for the lot-sizing problem with backlogging for stepwise transportation cost without speculative motives," Omega, Elsevier, vol. 59(PB), pages 238-250.
    14. Ming Zhao & Minjiao Zhang, 2020. "Multiechelon Lot Sizing: New Complexities and Inequalities," Operations Research, INFORMS, vol. 68(2), pages 534-551, March.
    15. Shi Li, 2020. "Constant Approximation Algorithm for Nonuniform Capacitated Multi-Item Lot Sizing via Strong Covering Inequalities," Mathematics of Operations Research, INFORMS, vol. 45(3), pages 947-965, August.
    16. Retsef Levi & Andrea Lodi & Maxim Sviridenko, 2008. "Approximation Algorithms for the Capacitated Multi-Item Lot-Sizing Problem via Flow-Cover Inequalities," Mathematics of Operations Research, INFORMS, vol. 33(2), pages 461-474, May.
    17. 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.
    18. Ou, Jinwen & Feng, Jiejian, 2019. "Production lot-sizing with dynamic capacity adjustment," European Journal of Operational Research, Elsevier, vol. 272(1), pages 261-269.
    19. C. P. M. van Hoesel & A. P. M. Wagelmans, 2001. "Fully Polynomial Approximation Schemes for Single-Item Capacitated Economic Lot-Sizing Problems," Mathematics of Operations Research, INFORMS, vol. 26(2), pages 339-357, May.
    20. Mathieu Van Vyve, 2007. "Algorithms for Single-Item Lot-Sizing Problems with Constant Batch Size," Mathematics of Operations Research, INFORMS, vol. 32(3), pages 594-613, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:198:y:2009:i:2:p:412-434. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.