Lot-sizing with stock upper bounds and fixed charges

Di Summa, Marco;Wolsey, Laurence
(2010) SIAM Journal on Discrete Mathematics — Vol. 24, n° 3, p. 853-875 (2010)

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Authors
  • Di Summa, MarcoUniversita degli Studi Di Torino
    Author
  • Wolsey, LaurenceUCLouvain
    Author
Abstract
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 obtained as the intersection of two simpler sets, one a pure integer set and the other a mixing set with a variable upper bound constraint. For these two sets we derive both inequality descriptions and polynomial-size extended formulations of their respective convex hulls. Finally we carry out some limited computational tests on single-item constant capacity lot-sizing problems with upper bounds and fixed charges on the stock variables in which we use the extended formulations derived above to strengthen the initial mixed-integer programming formulations.
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Citations

Di Summa, M., & Wolsey, L. (2010). Lot-sizing with stock upper bounds and fixed charges. SIAM Journal on Discrete Mathematics, 24(3), 853-875. https://doi.org/10.1137/090751451 (Original work published 2010)