| Article ID: | iaor20102946 |
| Volume: | 37 |
| Issue: | 2 |
| Start Page Number: | 102 |
| End Page Number: | 106 |
| Publication Date: | Mar 2009 |
| Journal: | Operations Research Letters |
| Authors: | Wagelmans Albert P M, van den Heuvel Wilco |
| Keywords: | lot sizing |
We show that in an optimal solution of the economic lot-sizing problem the total holding cost in an order interval is bounded from above by a quantity proportional to the setup cost and the logarithm of the number of periods in the interval. We present two applications of this result.