An efficient approach for solving the production/ordering planning problem with time-varying storage capacities

  1. José Miguel Gutiérrez 1
  2. Antonio Sedeño-Noda 1
  3. Marcos Colebrook 1
  4. Joaquín Sicilia 1
  1. 1 Universidad de La Laguna
    info

    Universidad de La Laguna

    San Cristobal de La Laguna, España

    ROR https://ror.org/01r9z8p25

Proceedings:
Operational Research Peripatetic Post-Graduate Programme (ORP3)

Publisher: ESMAP S.L.

ISBN: 84-689-3077-6

Year of publication: 2005

Pages: 75-83

Congress: Operational Research Peripatetic Post-Graduate Programme (ORP3)

Type: Conference paper

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Abstract

We address the dynamic lot size problemassuming time-varying storage capacities. The planninghorizon is divided into T periods and stockouts arenot allowed. Moreover, for each period, we consider asetup cost, a holding unit cost and a production/orderingunit cost, which can vary through the planning horizon.Although this model can be solved using O(T3) algorithms,we show that under this cost structure an optimal solutioncan be obtained in O(T log T) time. In addition, we showthat when production/ordering unit costs are assumed tobe constant, there exists an optimal plan satisfying theZero Inventory Ordering (ZIO) property. Computationalresults for randomly generated problems are reported.