Single item lot-sizing problem for a warm/cold process with immediate lost sales
We consider the dynamic lot-sizing problem with finite capacity and possible lost sales for a process that could be kept warm at a unit variable cost for the next period t + 1 only if more than a threshold value Q t has been produced and would be cold, otherwise. Production with a cold process incur...
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Veröffentlicht in: | European journal of operational research 2008-06, Vol.187 (3), p.1251-1267 |
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Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | We consider the dynamic lot-sizing problem with finite capacity and possible lost sales for a process that could be kept
warm at a unit variable cost for the next period
t
+
1 only if more than a threshold value
Q
t
has been produced and would be
cold, otherwise. Production with a cold process incurs a fixed positive setup cost,
K
t
and setup time,
S
t
, which may be positive. Setup costs and times for a warm process are negligible. We develop a dynamic programming formulation of the problem, establish theoretical results on the structure of the optimal production plan in the presence of zero and positive setup times with Wagner–Whitin-type cost structures. We also show that the solution to the dynamic lot-sizing problem with lost sales are generated from the full commitment production series improved via lost sales decisions in the presence of a warm/cold process. |
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ISSN: | 0377-2217 1872-6860 |
DOI: | 10.1016/j.ejor.2006.06.070 |