A heuristic algorithm for a multi-product dynamic lot-sizing and shipping problem |
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| Affiliation: | 1. Department of Systems Management & Engineering, Pukyong National University, San 100, Yongdang, Namgu, Pusan 608-739, Republic of Korea;2. Department of Applied Mathematics, Pukyong National University, Pusan, Republic of Korea;1. School of Industrial Engineering, Pontifical Catholic University of Valparaiso, Valparaiso, Chile;2. School of Industrial Engineering, Purdue University, 315 N. Grant Street, West Lafayette, IN 47907-2023, USA;1. Industrial and Systems Engineering Department, Texas A&M University, College Station, TX 77843-3131, United States;2. Mechanical and Industrial Engineering Department, Qatar University, Doha, Qatar;1. Eötvös Loránd University, Department of Algebra and Number Theory, 1117 Budapest, Pázmány Péter sétány 1/c, Hungary;2. Équipe de Logique Mathématique, Université Diderot – Paris 7, UFR de Mathématiques, 75205 Paris Cedex 13, France;3. Central European University, Department of Mathematics and its Applications, 1051 Budapest, Nádor utca 9, Hungary |
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| Abstract: | This paper analyzes a dynamic lot-sizing problem, in which the order size of multiple products and a single container type are simultaneously considered. In the problem, each order (product) placed in a period is immediately shipped by some containers in the period and the total freight cost is proportional to the number of containers used. It is also assumed that backlogging is not allowed. The objective of this study is to simultaneously determine the lot-sizes and the transportation policy that minimizes the total costs, which consist of production cost, inventory holding cost, and freight cost. Because this problem is NP-hard, a heuristic algorithm with an adjustment mechanism is proposed based on the optimal solution properties. The computational results from a set of simulation experiment are also presented. |
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