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Polynomial time algorithms for some multi-level lot-sizing problems with production capacities

Author

Listed:
  • van Hoesel, C.P.M.

    (Quantitative Economics)

  • Romeijn, H.E.

    (Externe publicaties SBE)

  • Romero Morales, M.D.

    (Quantitative Economics)

  • Wagelmans, A.

    (Externe publicaties SBE)

Abstract

We consider a model for a serial supply chain in which production, inventory, and transportation decisions are integrated, in the presence of production capacities and for different transportation cost functions. The model we study is a generalization of the traditional single-item economic lot-sizing model, adding stationary production capacities at the manufacturer, as well as multiple intermediate storage levels (including the retailer level), and transportation between these levels. Allowing for general concave production costs and linear holding costs, we provide polynomial time algorithms for the cases where the transportation costs are either linear, or are concave with a fixed-charge structure. In the latter case, we make the additional common and reasonable assumption that the variable transportation and inventory costs are such that holding inventories at higher levels in the supply chain is more attractive from a variable cost perspective. The running times of the algorithms are remarkably insensitive to the number of levels in the supply chain.

Suggested Citation

  • van Hoesel, C.P.M. & Romeijn, H.E. & Romero Morales, M.D. & Wagelmans, A., 2002. "Polynomial time algorithms for some multi-level lot-sizing problems with production capacities," Research Memorandum 018, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    • Handle: RePEc:unm:umamet:2002018
    DOI: 10.26481/umamet.2002018
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    References listed on IDEAS

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    Cited by:

    1. Wei Huang & H. Edwin Romeijn & Joseph Geunes, 2005. "The continuous‐time single‐sourcing problem with capacity expansion opportunities," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(3), pages 193-211, April.
    2. 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.

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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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