Economic Lot-Sizing for Integrated Production and Transportation

Hark‐Chin Hwang

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Supply Chain and Inventory Management Scheduling and Optimization Algorithms Optimization and Mathematical Programming

Abstract

In this study, improved and new algorithms are developed for economic lot-sizing problems with integrated production and transportation operations. To model the economies of scale in production with the effect of shipment consolidation in transportation, we assume concave production costs and stepwise transportation costs. More specifically, we consider concave/fixed-charge/nonspeculative cost functions in production, and nonstationary/stationary delivery cost functions in transportation. The cost functions in production are always assumed to be nonstationary. To achieve a cost-effective production and shipment schedule over time, inventories are considered for carrying and backlogging items. Efficient solution procedures are provided for all the models with or without backlogging under assumed cost structures.

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References

1958Dynamic Version of the Economic Lot Size Model 2004Dynamic Version of the Economic Lot Size Model 2000Stock Replenishment and Shipment Scheduling for Vendor-Managed Inventory Systems 1969A Backlogging Model and a Multi-Echelon Model of a Dynamic Economic Lot Size Production System—A Network Approach 1991A Simple Forward Algorithm to Solve General Dynamic Lot Sizing Models with n Periods in 0(n log n) or 0(n) Time 1993Improved Algorithms for Economic Lot Size Problems 1966A Deterministic Multi-Period Production Scheduling Model with Backlogging 1973Bounded Production and Inventory Models with Piecewise Concave Costs

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2019Integrated transportation – inventory models: A review 2020Integrated product and packaging decisions with secondary packaging returns and protective packaging management 2014Polynomial cases of the economic lot sizing problem with cost discounts 2014Joint production and delivery lot sizing for a make-to-order producer–buyer supply chain with transportation cost 2018Production lot-sizing with dynamic capacity adjustment

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