Single-product dynamic lot-sizing: Review and extension

In this study, the authors review the solution methods for the heuristic and optimization methods) for the single-item dynamic lot-sizing problem, and improve the efficiency (speed and optimality) of the conventional heuristic method by utilizing the inventory decomposition property. The inventory decomposition property decomposes the given original problem into several independent subproblems without violating the optimality conditions. Then each decomposed subproblem is solved by using the conventional heuristics such as LTC, LUC, Silver-Meal, etc. For testing the efficiency of the proposed decomposition method, the authors adopt the data sets given by Kaimann, Berry and Silver-Meal. The computational results show that the suggested problem solving framework results in some promising effects on the computation time and the degree of optimality. [In Korean.]