Solving single-product economic lot-sizing problem with non-increasing setup cost, constant capacity and convex inventory cost in O(NlogN) time
This paper considers an economic lot sizing model with constant capacity, non-increasing setup cost, and convex inventory cost function. Algorithms with computational time of O(NTDN)have been developed for solving the model, where N is the number of planning periods and TDN is the total demand. This study partially characterizes the optimal planning structure of the model. A new efficient algorithm with computational time of O(NlogN) has also been developed based on the partial optimal structure. Moreover, computational study demonstrates that the new algorithm is efficient.
inventory dynamic programming stochastic programming algorithm complexity