TECHNICAL NOTE---Solving Linear Cost Dynamic Lot-Sizing Problems in O(n log n) Time

  • Authors:
  • Ravindra K. Ahuja;Dorit S. Hochbaum

  • Affiliations:
  • Department of Industrial and Systems Engineering, University of Florida, Gainesville, Florida 32611;Department of Industrial Engineering and Operations Research, and Haas School of Management, University of California, Berkeley, California 94720

  • Venue:
  • Operations Research
  • Year:
  • 2008

Quantified Score

Hi-index 0.00

Visualization

Abstract

In this paper, we study capacitated dynamic lot-sizing problems with or without backorders, under the assumption that production costs are linear, that is, there are no setup costs. These two dynamic lot-sizing problems (with or without backorders) are minimum-cost flow problems on an underlying network that possess a special structure. We show how the well-known successive shortest-path algorithm for the minimum-cost flow problem can be used to solve these problems in O(n2) time, where n is the number of periods in the dynamic lot-sizing problems, and how, with the use of dynamic trees, we can solve these problems in O(n log n) time. Our algorithm also extends to the dynamic lot-sizing problem with integer variables and convex production costs with running time O(n log n log U), where U is the largest demand value.