An O(n2) algorithm for lot sizing with inventory bounds and fixed costs

  • Authors:
  • Alper AtamtüRk;Simge KüçüKyavuz

  • Affiliations:
  • Department of Industrial Engineering and Operations Research, University of California, Berkeley, CA 94720-1777, USA;Department of Systems and Industrial Engineering, University of Arizona, Tucson, AZ 85721-0020, USA

  • Venue:
  • Operations Research Letters
  • Year:
  • 2008

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Abstract

We present an O(n^2) dynamic programming algorithm for lot sizing with inventory bounds and fixed costs, where n is the number of time periods. The algorithm utilizes a hierarchy of two layers of value functions and improves the complexity bound of an earlier O(n^3) algorithm for concave-cost and bounded inventory.