An Efficient Dynamic Programming Approach to Optimize Capacitated Lot-sizing Problem

Authors

1 Young Researchers and Elite Club, Qazvin Branch, Islamic Azad University, Qazvin, Iran

2 Department of Management and Soft Technologies, Malek Ashtar University of Technology, Tehran, Iran

Abstract

In most industrial applications, determining production quantities are one of the most key decision making. In this paper, an integer mathematical programming model for lot-sizing problem with considering set-up time, safety stock, shortage cost, and different production manners, is presented. The objective is to minimize summation of production, set up, holding, and shortage costs. To solve the model, a forward dynamic programming (DP) approach is presented and compared with classical backward DP method. Finally, different numerical illustrations with different dimension are generated. The statistical analysis on computational results showed that the proposed DP approach is more applicable than the classical DP in terms of computational time.

Keywords

Main Subjects


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Volume 6, Issue 1
April 2016
Pages 89-102
  • Receive Date: 10 November 2014
  • Revise Date: 26 April 2016
  • Accept Date: 08 September 2016
  • First Publish Date: 08 September 2016