A robust model for the lot-sizing problem with uncertain demands

Abstract We consider a lot-sizing problem with set-ups where the demands are uncertain, and propose novel approach to evaluate inventory costs. An interval uncertainty is assumed for demands. Between two consecutive production periods, adversary chooses set demand either its higher value or lower in order maximize (holding backlog) A mixed-integer model devised column-and-row generation algorithm proposed. Computational tests based on random generated instances conducted model, decomposition algorithm, compare structure of solutions from robust those deterministic model.