Article
A Polyhedral Study of Multiechelon Lot Sizing with Intermediate Demands
Opeartions Research
(2012)
Abstract
In this paper, we study a multiechelon uncapacitated lot-sizing problem in series (m-ULS), where the output of the intermediate echelons has its own external demand and is also an input to the next echelon. We propose a polynomial-time dynamic programming algorithm, which gives a tight, compact extended formulation for the two-echelon case (2-ULS). Next, we present a family of valid inequalities for m-ULS, show its strength, and give a polynomial-time separation algorithm. We establish a hierarchy between the alternative formulations for 2-ULS. In particular, we show that our valid inequalities can be obtained from the projection of the multicommodity formulation. Our computational results show that this extended formulation is very effective in solving our uncapacitated multi-item two-echelon test problems. In addition, for capacitated multi-item, multiechelon problems, we demonstrate the effectiveness of a branch-and-cut algorithm using the proposed inequalities.
Keywords
- lot sizing ; multiechelon ; facets ; extended formulation ; fixed-charge networks
Disciplines
Publication Date
2012
Citation Information
Minjiao Zhang, Simge Kucukyavuz and Hande Yaman. "A Polyhedral Study of Multiechelon Lot Sizing with Intermediate Demands" Opeartions Research (2012) Available at: http://works.bepress.com/minjiaozhang/5/