Solving single-product economic lot-sizing problem with non-increasing setup cost, constant capacity and convex inventory cost in O(NlogN) time

  • Authors:
  • Yi Feng;Shaoxiang Chen;Arun Kumar;Bing Lin

  • Affiliations:
  • School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 610054, China;Nanyang Business School, Nanyang Technological University, 50 Nanyang Avenue, Singapore 639798, Singapore;School of Aerospace, Mechanical and Manufacturing Engineering, RMIT University, 124 LaTrobe Street, Melbourne, VIC 3000, Australia;Nanyang Business School, Nanyang Technological University, 50 Nanyang Avenue, Singapore 639798, Singapore

  • Venue:
  • Computers and Operations Research
  • Year:
  • 2011

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Abstract

This paper considers an economic lot sizing model with constant capacity, non-increasing setup cost, and convex inventory cost function. Algorithms with computational time of O(NxTD"N)have been developed for solving the model, where N is the number of planning periods and TD"N is the total demand. This study partially characterizes the optimal planning structure of the model. A new efficient algorithm with computational time of O(NlogN) has also been developed based on the partial optimal structure. Moreover, computational study demonstrates that the new algorithm is efficient.