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Economic lot sizing with constant capacities and concave inventory costs
Author(s) -
Ou Jinwen
Publication year - 2012
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/nav.21504
Subject(s) - sizing , constant (computer programming) , mathematical optimization , economic order quantity , computer science , order (exchange) , linear programming , dynamic programming , inventory cost , holding cost , operations research , mathematics , economics , political science , law , supply chain , visual arts , programming language , art , finance
This article studies the classical single‐item economic lot‐sizing problem with constant capacities, fixed‐plus‐linear order costs, and concave inventory costs, where backlogging is allowed. We propose an O ( T 3 ) optimal algorithm for the problem, which improves upon the O ( T 4 ) running time of the famous algorithm developed by Florian and Klein ( Manage Sci 18 (1971) 12–20). Instead of using the standard dynamic programming approach by predetermining the minimal cost for every possible subplan, we develop a backward dynamic programming algorithm to obtain a more efficient implementation. © 2012 Wiley Periodicals, Inc. Naval Research Logistics, 2012