Lot Sizing with Inventory Bounds and Fixed Costs: Polyhedral Study and Computation

  title={Lot Sizing with Inventory Bounds and Fixed Costs: Polyhedral Study and Computation},
  author={Alper Atamt{\"u}rk and Simge K{\"u}ç{\"u}kyavuz},
  journal={Operations Research},
We investigate the polyhedral structure of the lot-sizing problem with inventory bounds. We consider two models, one with linear cost on inventory, the other with linear and fixed costs on inventory. For both models, we identify facet-defining inequalities that make use of the inventory bounds explicitly and give exact separation algorithms. We also describe a linear programming formulation of the problem when the order and inventory costs satisfy the Wagner-Whitin nonspeculative property. We… CONTINUE READING
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