Abstract
| Original language | English |
|---|---|
| Journal | Management Science |
| Volume | 51 |
| Issue number | 11 |
| Pages (from-to) | 1706-1719 |
| ISSN | 0025-1909 |
| DOIs | |
| Publication status | Published - 2005 |
| Externally published | Yes |
Cite this
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Integrated Lot Sizing in Serial Supply Chains with Production Capacities. / van Hoesel, Stan; Romeijn, H. Edwin; Romero Morales, Dolores ; Wagelmans, Albert P. M.
In: Management Science, Vol. 51, No. 11, 2005, p. 1706-1719.Research output: Contribution to journal › Journal article › Research › peer-review
TY - JOUR
T1 - Integrated Lot Sizing in Serial Supply Chains with Production Capacities
AU - van Hoesel, Stan
AU - Romeijn, H. Edwin
AU - Romero Morales, Dolores
AU - Wagelmans, Albert P. M.
PY - 2005
Y1 - 2005
N2 - We consider a model for a serial supply chain in which production, inventory, and transportation decisions are integrated in the presence of production capacities and concave cost functions. The model we study generalizes the uncapacitated serial single-item multilevel economic lot-sizing model by adding stationary production capacities at the manufacturer level. We present algorithms with a running time that is polynomial in the planning horizon when all cost functions are concave. In addition, we consider different transportation and inventory holding cost structures that yield improved running times: inventory holding cost functions that are linear and transportation cost functions that are either linear, or are concave with a fixed-charge structure. In the latter case, we make the additional common and reasonable assumption that the variable transportation and inventory costs are such that holding inventories at higher levels in the supply chain is more attractive from a variable cost perspective. While the running times of the algorithms are exponential in the number of levels in the supply chain in the general concave cost case, the running times are remarkably insensitive to the number of levels for the other two cost structures.
AB - We consider a model for a serial supply chain in which production, inventory, and transportation decisions are integrated in the presence of production capacities and concave cost functions. The model we study generalizes the uncapacitated serial single-item multilevel economic lot-sizing model by adding stationary production capacities at the manufacturer level. We present algorithms with a running time that is polynomial in the planning horizon when all cost functions are concave. In addition, we consider different transportation and inventory holding cost structures that yield improved running times: inventory holding cost functions that are linear and transportation cost functions that are either linear, or are concave with a fixed-charge structure. In the latter case, we make the additional common and reasonable assumption that the variable transportation and inventory costs are such that holding inventories at higher levels in the supply chain is more attractive from a variable cost perspective. While the running times of the algorithms are exponential in the number of levels in the supply chain in the general concave cost case, the running times are remarkably insensitive to the number of levels for the other two cost structures.
KW - Lot sizing
KW - Integration of production planning and transportation
KW - Dynamic programming
KW - Polynomial time algorithms
U2 - 10.1287/mnsc.1050.0378
DO - 10.1287/mnsc.1050.0378
M3 - Journal article
VL - 51
SP - 1706
EP - 1719
JO - Management Science
JF - Management Science
SN - 0025-1909
IS - 11
ER -