Article ID: | iaor20032224 |
Country: | United States |
Volume: | 47 |
Issue: | 10 |
Start Page Number: | 1384 |
End Page Number: | 1395 |
Publication Date: | Oct 2001 |
Journal: | Management Science |
Authors: | Lee Chung-Yee, Wagelmans Albert P.M., etinkaya Sila |
Keywords: | programming: dynamic |
One of the basic assumptions of the classical dynamic lot-sizing model is that the aggregate demand of a given period must be satisfied in that period. Under this assumption, if backlogging is not allowed, then the demand of a given period cannot be delivered earlier or later than the period. If backlogging is allowed, the demand of a given period cannot be delivered earlier than the period, but it can be delivered later at the expense of a backordering cost. Like most mathematical models, the classical dynamic lot-sizing model is a simplified paraphrase of what might actually happen in real life. In most real-life applications, the customer offers a grace period – we call it a demand time window – during which a particular demand can be satisfied with no penalty. That is, in association with each demand, the customer specifies an acceptable earliest and a latest delivery time. The time interval characterized by the earliest and latest delivery dates of a demand represents the corresponding time window. This paper studies the dynamic lot-sizing problem with demand time windows and provides polynomial time algorithms for computing its solution. If backlogging is not allowed, the complexity of the proposed algorithm is O(