Paper Info
Title
Integrated Lot Sizing in Serial Supply Chains with Production Capacities
Abstract
We consider a model for a serial supply chain in which production, inventory, and transportation decisions are integrated in the presence of production capacities and concave cost functions. The model we study generalizes the uncapacitated serial single-item multilevel economic lot-sizing model by adding stationary production capacities at the manufacturer level. We present algorithms with a running time that is polynomial in the planning horizon when all cost functions are concave. In addition, we consider different transportation and inventory holding cost structures that yield improved running times: inventory holding cost functions that are linear and transportation cost functions that are either linear, or are concave with a fixed-charge structure. In the latter case, we make the additional common and reasonable assumption that the variable transportation and inventory costs are such that holding inventories at higher levels in the supply chain is more attractive from a variable cost perspective. While the running times of the algorithms are exponential in the number of levels in the supply chain in the general concave cost case, the running times are remarkably insensitive to the number of levels for the other two cost structures.
Year
DOI
Venue
2005
10.1287/mnsc.1050.0378
MANAGEMENT SCIENCE
Keywords
Field
DocType
lot sizing,integration of production planning and transportation,dynamic programming,polynomial time algorithms
Mathematical optimization,Economics,Holding cost,Operations research,Concave function,Inventory control,Semi-variable cost,Production planning,Supply chain,Total cost,Variable cost
Journal
Volume
Issue
ISSN
51
11
0025-1909
Citations 
PageRank 
References 
32
2.03
4
Authors
4
Name
Order
Citations
PageRank
Stan P.M. van Hoesel167966.81
H. Edwin Romeijn276983.88
Dolores Romero Morales322016.68
Albert P. M. Wagelmans437530.12