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

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  • 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
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    References listed on IDEAS

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    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.
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