Article ID: | iaor19911511 |
Country: | United States |
Volume: | 35 |
Issue: | 12 |
Start Page Number: | 1433 |
End Page Number: | 1442 |
Publication Date: | Dec 1989 |
Journal: | Management Science |
Authors: | Roundy Robin |
Keywords: | heuristics |
In the capacitated version of the Divide and Conquer algorithm for lot sizing in multi-stage production/inventory problems, feasibility is often lost when the reorder intervals are rounded off to powers of two. The paper proposes a new algorithm for rounding off the reorder intervals which always produces a feasible policy. It has been shown that the relative increase in cost that occurs when the intervals are rounded off using this algorithm cannot exceed 44%, and that for systems with a single capacity-constrained machine (including the ELSP), the cost increase cannot exceed 6%. Computational experience with industrial data sets indicates that the algorithm performs very well.