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In this paper, we demonstrate the computational consequences of making a simple assumption on production cost structures in capacitated lot-size problems. Our results indicate that our cost assumption of increased productivity over time has dramatic effects on the problem sizes which are solvable. Our experiments indicate that problems with more than 1000 products in more than 1000 time periods may be solved within reasonable time. The Lagrangian decomposition algorithm we use does of course not...
This paper derives a good approach to approximating the
expected inventory level per unit time for the continuous
review (Q, r) perishable inventory system. Three existing
approximation approaches are examined and compared with
the proposed approach. Three stockout cases, including the
full backorder, the partial backorder, and the full lost
sales cases, which customers or material users generally
use to respond to a stockout condition are considered.
This study reveals the fact that the...
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