This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Download to citation manager Citing Articles Citing Articles via Google Scholar Google Scholar Articles by Atamtürk, A. Articles by Küçükyavuz, S. Search for Related Content

Lot Sizing with Inventory Bounds and Fixed Costs: Polyhedral Study and Computation

Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94720–1777
Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94720–1777
atamturk{at}ieor.berkeley.edu
simge{at}ieor.berkeley.edu

We investigate the polyhedral structure of the lot-sizing problem with inventory bounds. We consider two models, one with linear cost on inventory, the other with linear and fixed costs on inventory. For both models, we identify facet-defining inequalities that make use of the inventory bounds explicitly and give exact separation algorithms. We also describe a linear programming formulation of the problem when the order and inventory costs satisfy the Wagner-Whitin nonspeculative property. We present computational experiments that show the effectiveness of the results in tightening the linear programming relaxations of the lot-sizing problem with inventory bounds and fixed costs.

Subject classifications: lot sizing; facets; separation algorithms; computation.
History: Received July 2003; revision received February 2004; accepted July 2004.