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Lot-sizing with stock upper bounds and fixed charges

Author

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  • DI SUMMA, Marco
  • WOLSEY, Laurence A.

Abstract

Here we study the discrete lot-sizing problem with an initial stock variable and an associated variable upper bound constraint. This problem is of interest in its own right, and is also a natural relaxation of the constant capacity lot-sizing problem with upper bounds and fixed charges on the stock variables. We show that the convex hull of solutions of the discrete lot-sizing problem is obtained as the intersection of two simpler sets, one involving just 0-1 variables and the second a mixing set with a variable upper bound constraint. For these two sets we derive both inequality descriptions and polynomial-size extended formulations of their respective convex hulls. Finally we carry out some limited computational tests on single-item constant capacity lot-sizing problems with upper bounds and fixed charges on the stock variables in which we use the extended formulations derived above to strengthen the initial mixed integer programming formulations.

Suggested Citation

  • DI SUMMA, Marco & WOLSEY, Laurence A., 2009. "Lot-sizing with stock upper bounds and fixed charges," LIDAM Discussion Papers CORE 2009025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2009025
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