On the power of lookahead in online lot-sizing

Authors:
Lauri Ahlroth;André Schumacher;Harri Haanpää
Affiliations:
Aalto University School of Science and Technology, Department of Information and Computer Science, Finland;Aalto University School of Science and Technology, Department of Information and Computer Science, Finland;Aalto University School of Science and Technology, Department of Communications and Networking, Finland
Venue:
Operations Research Letters
Year:
2010

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Abstract

We propose an online algorithm for an economic lot-sizing (ELS) problem with lookahead, which achieves asymptotically optimal worst-case performance for increasing lookahead. Although intuitive, this result is interesting since deterministic algorithms for previously studied online ELS problems have unbounded competitive ratio. We also prove lookahead-dependent lower bounds for deterministic algorithms.