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Multiproduct dynamic lot‐sizing model with coordinated replenishments
Author(s) -
Erenguc S. Selcuk
Publication year - 1988
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.3220350102
Subject(s) - sizing , mathematical optimization , schedule , computer science , product (mathematics) , minification , set (abstract data type) , branch and bound , upper and lower bounds , mathematics , art , mathematical analysis , geometry , visual arts , programming language , operating system
In this article we consider a multiproduct dynamic lot‐sizing model. In addition to a separate setup cost for each product ordered, a joint setup cost is incurred when at least one product is ordered. We formulate the model as a concave minimization problem over a compact polyhedral set and present a finite branch and bound algorithm for finding an optimal ordering schedule. Superiority of the branch and bound algorithm to the existing exact procedures is demonstrated. We report computational experience with problems whose dimensions render the existing procedures computationally infeasible.