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On Setup Cost Reduction in the Economic Lot-Sizing Model Without Speculative Motives

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dc.creator Hoesel, Stan Van
dc.creator Wagelmans, Albert
dc.date 2004-05-28T19:33:46Z
dc.date 2004-05-28T19:33:46Z
dc.date 1991-08
dc.date.accessioned 2013-10-09T02:39:01Z
dc.date.available 2013-10-09T02:39:01Z
dc.date.issued 2013-10-09
dc.identifier http://hdl.handle.net/1721.1/5324
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/1721
dc.description An important special case of the economic lot-sizing problem is the one in which there are no speculative motives to hold inventory, i.e., the marginal cost of producing one unit in some period plus the cost of holding it until some future period is at least the marginal production cost in the latter period. It is already known that this special case can be solved in linear time. In this paper we study the effects of reducing all setup costs by the same amount. It turns out that the optimal solution changes in a very structured way. This fact will be used to develop faster algorithms for several problems that can be reformulated as parametric lot-sizing problems. One result, worth a sepparate mention, is an algorithm for the so-called dyna-mic lot-.sizing proble-m with learning effects in setups. This algorithm has a complexity that is of the same order as the fastest algorithm known so far, but it is valid for a more general class of models than usually considered. OR/MS subject classification: Analysis of algorithms, computational complexity: parametric economic lot-sizing problem; Dynamic programming /optimal control, applications: parametric economic lot-sizing problem; Inventory/)production, planning horizon: setup cost reduction in economic lot-sizing molel.
dc.format 1083730 bytes
dc.format application/pdf
dc.language en_US
dc.publisher Massachusetts Institute of Technology, Operations Research Center
dc.relation Operations Research Center Working Paper;OR 256-91
dc.title On Setup Cost Reduction in the Economic Lot-Sizing Model Without Speculative Motives
dc.type Working Paper


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