IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v100y2021ics0305048319307844.html
   My bibliography  Save this article

An improved algorithm for the lot-sizing problem with outbound shipment

Author

Listed:
  • Hwang, Hark-Chin
  • Kang, Jangha

Abstract

In this study, we propose an improved algorithm for the two-level lot-sizing problem with outbound shipment. Exploiting the synchronization relationship of inbound replenishment with outbound dispatch, we provide an efficient dynamic programming (DP) algorithm. We incorporate the structure of the DP with the geometric technique, which is known as the most efficient approach in solving lot-sizing problems, to design an O(T3) algorithm improving upon the previous O(T4) algorithm.

Suggested Citation

  • Hwang, Hark-Chin & Kang, Jangha, 2021. "An improved algorithm for the lot-sizing problem with outbound shipment," Omega, Elsevier, vol. 100(C).
    • Handle: RePEc:eee:jomega:v:100:y:2021:i:c:s0305048319307844
    DOI: 10.1016/j.omega.2020.102205
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048319307844
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2020.102205?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Hwang, Hark-Chin & Kang, Jangha, 2020. "The two-level lot-sizing problem with outbound shipment," Omega, Elsevier, vol. 90(C).
    2. Hark-Chin Hwang, 2010. "Economic Lot-Sizing for Integrated Production and Transportation," Operations Research, INFORMS, vol. 58(2), pages 428-444, April.
    3. Albert Wagelmans & Stan van Hoesel & Antoon Kolen, 1992. "Economic Lot Sizing: An O(n log n) Algorithm That Runs in Linear Time in the Wagner-Whitin Case," Operations Research, INFORMS, vol. 40(1-supplem), pages 145-156, February.
    4. 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.
    5. Harvey M. Wagner & Thomson M. Whitin, 1958. "Dynamic Version of the Economic Lot Size Model," Management Science, INFORMS, vol. 5(1), pages 89-96, October.
    6. Willard I. Zangwill, 1968. "Minimum Concave Cost Flows in Certain Networks," Management Science, INFORMS, vol. 14(7), pages 429-450, March.
    7. 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.
    8. Awi Federgruen & Michal Tzur, 1991. "A Simple Forward Algorithm to Solve General Dynamic Lot Sizing Models with n Periods in 0(n log n) or 0(n) Time," Management Science, INFORMS, vol. 37(8), pages 909-925, August.
    9. MELO, Rafael A. & WOLSEY, Laurence A., 2010. "Uncapacitated two-level lot-sizing," LIDAM Reprints CORE 2235, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. Alok Aggarwal & James K. Park, 1993. "Improved Algorithms for Economic Lot Size Problems," Operations Research, INFORMS, vol. 41(3), pages 549-571, June.
    11. 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.
    12. van Hoesel, Stan & Wagelmans, Albert & Moerman, Bram, 1994. "Using geometric techniques to improve dynamic programming algorithms for the economic lot-sizing problem and extensions," European Journal of Operational Research, Elsevier, vol. 75(2), pages 312-331, June.
    13. Oguz Solyali & Meltem Denizel & Haldun Süral, 2016. "Effective network formulations for lot sizing with backlogging in two-level serial supply chains," IISE Transactions, Taylor & Francis Journals, vol. 48(2), pages 146-157, February.
    Full references (including those not matched with items on IDEAS)

    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. Hwang, Hark-Chin & Kang, Jangha, 2020. "The two-level lot-sizing problem with outbound shipment," Omega, Elsevier, vol. 90(C).
    2. 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.
    3. Minjiao Zhang & Simge Küçükyavuz & Hande Yaman, 2012. "A Polyhedral Study of Multiechelon Lot Sizing with Intermediate Demands," Operations Research, INFORMS, vol. 60(4), pages 918-935, August.
    4. Hark‐Chin Hwang & Wilco van den Heuvel, 2012. "Improved algorithms for a lot‐sizing problem with inventory bounds and backlogging," Naval Research Logistics (NRL), John Wiley & Sons, vol. 59(3‐4), pages 244-253, April.
    5. Hark-Chin Hwang, 2010. "Economic Lot-Sizing for Integrated Production and Transportation," Operations Research, INFORMS, vol. 58(2), pages 428-444, April.
    6. Hark-Chin Hwang & Hyun-Soo Ahn & Philip Kaminsky, 2013. "Basis Paths and a Polynomial Algorithm for the Multistage Production-Capacitated Lot-Sizing Problem," Operations Research, INFORMS, vol. 61(2), pages 469-482, April.
    7. 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.
    8. Ming Zhao & Minjiao Zhang, 2020. "Multiechelon Lot Sizing: New Complexities and Inequalities," Operations Research, INFORMS, vol. 68(2), pages 534-551, March.
    9. Hwang, H.C., 2009. "Economic Lot-Sizing Problem with Bounded Inventory and Lost-Sales," Econometric Institute Research Papers EI 2009-01, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    10. 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.
    11. Stan van Hoesel & H. Edwin Romeijn & Dolores Romero Morales & Albert P. M. Wagelmans, 2005. "Integrated Lot Sizing in Serial Supply Chains with Production Capacities," Management Science, INFORMS, vol. 51(11), pages 1706-1719, November.
    12. Martel, Alain & Gascon, Andre, 1998. "Dynamic lot-sizing with price changes and price-dependent holding costs," European Journal of Operational Research, Elsevier, vol. 111(1), pages 114-128, November.
    13. Vernon Ning Hsu, 2000. "Dynamic Economic Lot Size Model with Perishable Inventory," Management Science, INFORMS, vol. 46(8), pages 1159-1169, August.
    14. 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.
    15. Goisque, Guillaume & Rapine, Christophe, 2017. "An efficient algorithm for the 2-level capacitated lot-sizing problem with identical capacities at both levels," European Journal of Operational Research, Elsevier, vol. 261(3), pages 918-928.
    16. Hwang, Hark-Chin & Jaruphongsa, Wikrom, 2008. "Dynamic lot-sizing model for major and minor demands," European Journal of Operational Research, Elsevier, vol. 184(2), pages 711-724, January.
    17. Eksioglu, Sandra Duni, 2009. "A primal-dual algorithm for the economic lot-sizing problem with multi-mode replenishment," European Journal of Operational Research, Elsevier, vol. 197(1), pages 93-101, August.
    18. Siao-Leu Phouratsamay & Safia Kedad-Sidhoum & Fanny Pascual, 2021. "Coordination of a two-level supply chain with contracts," 4OR, Springer, vol. 19(2), pages 235-264, June.
    19. van den Heuvel, W.J. & Wagelmans, A.P.M., 2003. "A geometric algorithm to solve the NI/G/NI/ND capacitated lot-sizing problem in O(T2) time," Econometric Institute Research Papers EI 2003-24, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    20. 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.

    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:jomega:v:100:y:2021:i:c:s0305048319307844. 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/wps/find/journaldescription.cws_home/375/description#description .

    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.