Capacitated dynamic lot-sizing problem with delivery/production time windows

Authors:
H. -C. Hwang;W. Jaruphongsa;S. ÇEtinkaya;C. -Y. Lee
Affiliations:
Department of Industrial Engineering, Chosun University, 375 Seosuk-Dong, Dong-Gu, Gwangju 501-759, South Korea;Sasin Graduate Institute of Business Administration of Chulalongkorn University, Phyathai Road, Pathumwan, Bangkok 10330, Thailand;Department of Industrial and Systems Engineering, Texas A&M University, College Station, TX 77843, United States;Department of Industrial Engineering and Logistics Management, Hong Kong University of Science & Technology, Clear Water Bay, Kowloon, Hong Kong
Venue:
Operations Research Letters
Year:
2010

Citing 12
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Abstract

In this paper we generalize the classical dynamic lot-sizing problem by considering production capacity constraints as well as delivery and/or production time windows. Utilizing an untraditional decomposition principle, we develop a polynomial-time algorithm for computing an optimal solution for the problem under the assumption of non-speculative costs. The proposed solution methodology is based on a dynamic programming algorithm that runs in O(nT^4) time, where n is the number of demands and T is the length of the planning horizon.