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Lot sizing problems

  • Given a set \(T=\{1,2,\dots,m\}\) of periods with a demand \(d_t\) in every period \(t\in T\), a solution fixes the periods with a setup and the quantity produced in each of them, so that every demand is satisfied.

  • The objective is to minimize the total cost of setups, production and inventory holding; the members differ in the capacities, in the number of products and in the treatment of initial stock, overtime and unsatisfied demand.

Problem Acronym Difference
Capacitated lot sizing CLS The central problem of the family.
Uncapacitated lot sizing problem ULS Special case of the CLS in which the capacities are not binding, for example \(cap_t \ge \sum_u d_u\).
Capacitated lot sizing with constant capacity CLS-C Special case of the CLS; the zero-inventory ordering property is replaced by a weaker one: between two periods with empty inventory at most one period produces a quantity strictly between \(0\) and \(C\).
Lot sizing with several products and setup times MLS Generalizes the CLS, which is the case of one product with \(vt_t=1\) and no setup time.
Lot sizing with initial stock LS-SI Removes the assumption of an empty initial stock of the CLS.
Lot sizing with overtime LS-OT Replaces the fixed capacity \(cap_t\) of the CLS by two levels of capacity with different costs.
Lot sizing with unsatisfied demand LS-UD Relaxes the demand constraints of the CLS, with a penalty in the objective.