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On the polyhedral structure of two‐level lot‐sizing problems with supplier selection
Author(s) -
Arslan Ayşe N.,
Richard JeanPhilippe P.,
Guan Yongpei
Publication year - 2016
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.21725
Subject(s) - sizing , selection (genetic algorithm) , mathematical optimization , computer science , supply chain , supply chain management , computation , production (economics) , operations research , mathematics , algorithm , artificial intelligence , economics , business , microeconomics , art , marketing , visual arts
In this article, we study a two‐level lot‐sizing problem with supplier selection (LSS), which is an NP‐hard problem arising in different production planning and supply chain management applications. After presenting various formulations for LSS, and computationally comparing their strengths, we explore the polyhedral structure of one of these formulations. For this formulation, we derive several families of strong valid inequalities, and provide conditions under which they are facet‐defining. We show numerically that incorporating these valid inequalities within a branch‐and‐cut framework leads to significant improvements in computation. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 647–666, 2017