An efficient approach for solving the production/ordering planning problem with time-varying storage capacities
Date:
September 06-10, 2005. Co-authored with Gutiérrez JM, Sedeño-Noda A and Sicilia J. ISBN 84-689-3077-6, pages 75-83.
Abstract
We address the dynamic lot size problem assuming time-varying storage capacities. The planning horizon is divided into T periods and stockouts are not allowed. Moreover, for each period, we consider a setup cost, a holding unit cost and a production/ordering unit cost, which can vary through the planning horizon. Although this model can be solved using O(T^3) algorithms, we show that under this cost structure an optimal solution can be obtained in O(T log T) time. In addition, we show that when production/ordering unit costs are assumed to be constant, there exists an optimal plan satisfying the Zero Inventory Ordering (ZIO) property. Computational results for randomly generated problems are reported.