In this paper we present a heuristic method, based on Lagrangian relaxation, for multilevel lot-sizing when there is a single bottleneck facility. A series of Lagrangian relaxations (one for each item in the product structure) is imbedded in a branch and bound procedure. The objective is to find...

Monahan (Monahan, James P. 1984. A quantity discount pricing model to increase vendor profits. Management Sci. 30 (June) 720--726.) develops a model for establishing an optimal quantity discount schedule from a vendor's viewpoint. In this note we show that this model is limited to the case where...

Component lot-splitting considerations, in which the lot-size of a component item may cover only a fraction of its parent item's lot-size, have been ignored in the literature when determining lot-sizes of items in multi-stage manufacturing systems. In this paper, a multi-stage lot-sizing problem...

This paper deals with mixed-model line balancing; i.e., the problem of combining line balancing with lot sizing in a multi-product environment. Recent developments in the area of multi-echelon production/inventory systems are applied, and algorithms are developed which determine the number of...

A warehouse supplies N retailers. Constant external demand occurs at each retailer, and shortages are not allowed. There are linear holding costs and fixed costs for ordering at the warehouse and at each retailer. The goal is to minimize the long-run average cost over an infinite time horizon....

This paper deals with the classical dynamic lot size problem without backlogging and capacity limitation. We derive worst case performance bounds for a class of lot sizing heuristics. When the considered methods are applied a decision whether to have a set-up or not in a certain period is taken...

This paper develops optimal order quantities for firms that are offered a one-time opportunity to delay payment for an order of a commodity. Such delayed payments result in a reduction of the effective purchase cost, which is a function of the return available on alternative investments, the...

The multi-item joint replenishment problem is generalized to allow ordering costs to be dependent on the specific items jointly supplied. A fixed cycle approach is examined in which all the items of a group are always jointly replenished. A dynamic programming algorithm is developed for...

This paper investigates a multi-item, multi-level production scheduling problem with linear costs and production and inventory constraints at one key facility. Two multi-item problems---one in which the constraint was on shipping capability and one in which there was a final stage bottleneck...

Previous work dealt with the problems of nervousness in Material Requirements Planning (MRP) Systems when production schedules were modified to include setups which previously had not been scheduled. In this work we further examine nervousness and its cost. By modifying the setup costs used in...