Article ID: | iaor1989888 |
Country: | United Kingdom |
Volume: | 17 |
Start Page Number: | 199 |
End Page Number: | 210 |
Publication Date: | Jan 1990 |
Journal: | Computers and Operations Research |
Authors: | Erenguc S. Selcuk, Aksoy Yasmin |
Keywords: | optimization, programming: branch and bound |
The authors develop a branch and bound algorithm for solving a deterministic single item nonconvex dynamic lot sizing problem with production and inventory capacity constraints. The production cost function is neither convex nor concave. It is a composite function with a fixed setup cost to start the production and a piecewise linear convex variable production cost. The algorithm finds a global optimum solution for the problem after solving a finite number of linear knapsack problems with bounded variables. Computational experience with randomly generated problems suggest that the algorithm solves the dynamic lot sizing problem in a computationally efficient manner both in terms of CPU time and storage requirements.