Lot-Sizing with Stock Upper Bounds and Fixed Charges

  • Authors:
  • Marco Di Summa;Laurence A. Wolsey

  • Affiliations:
  • disumma@di.unito.it;laurence.wolsey@uclouvain.be

  • Venue:
  • SIAM Journal on Discrete Mathematics
  • Year:
  • 2010

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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 a pure integer set and the other 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.