Production lot-sizing has a special significance in supply chain taking into account the fact that majority of the lot-sizing problems are associated with NP-hard scheduling and sequencing problems. The complexity increases exponentially when multi-item capacitated dynamic lot-sizing is considered. The basic economic production quantity (EPQ) model minimizes the sum of setup and holding cost un...

A game merging the lot-sizing problem with a Cournot competition model is for the first time theoretically studied. Each player is a producer with her own production facility, modeled as an uncapacitated lot-sizing problem (i.e., production incurs set-up and variable costs and inventories are allowed). A Cournot competition is played in each time period (market) with each player deciding the qu...

We consider the problem of determining realistic and easy-to-schedule lot sizes in a multiproduct, multistage manufacturing environment. We concentrate on a specific type of production, namely, flow shop type production. The model developed consists of two parts, lot sizing problem and scheduling problem. In lot sizing problem, we employ binary integer programming and determine reorder interval...

Ravindra K. Ahuja and Dorit S. Hochbaum Abstract In this paper, we study capacitated dynamic lot sizing problems with or without backorders, under the assumption that production costs are linear, that is, there are no set up costs. These two dynamic lot sizing problems (with or without backorders) are minimum cost flow problems on an underlying network that possess a special structure. We show ...

As a traditional model in the operations research and management science domain, deterministic lot-sizing problem is embedded in many application problems such as production and inventory planning and has been consistently drawing attentions from researchers. In this paper we consider basic versions of lot-sizing models in which problem parameters are stochastic and develop corresponding scenar...

Drop-shipping is an arrangement whereby an e-tailer, who does not hold inventories, processes orders and requests a manufacturer to ship products directly to the end customers. To explore the economic benefits of adopting drop-shipping distribution strategy in a competitive environment, we investigate the profitability and the efficiency of the drop-shipping channel as compared to the tradition...

Here we study the discrete lot-sizing problem with an initial stock variable and an associated variable upper bound constraint. This problem is of interest in its own right, and is also a natural relaxation of the constant capacity lot-sizing problem with upper bounds and fixed charges on the stock variables. We show that the convex hull of solutions of the discrete lot-sizing problem is obtain...

Here we study the discrete lot-sizing problem with an initial stock variable and an associated variable upper bound constraint. This problem is of interest in its own right, and is also a natural relaxation of the constant capacity lot-sizing problem with upper bounds and fixed charges on the stock variables. We show that the convex hull of solutions of the discrete lot-sizing problem is obtain...