What is it about?
We consider an effective network formulation of the two-level lot sizing problem with backlogging to determine when and how much to order at a warehouse and ship to a retailer over T periods so that the customer demands are satisfied and the total cost at all levels is minimized.
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Why is it important?
We introduce effective shortest-path network representations for the uncapacitated two-level serial lot sizing problem with (1) backlogging and (2) cargo capacity and backlogging. These representations lead to efficient algorithms with O(T3) time for the case (1) and O(T6) time for the case (2). The network representations of the two problems define the convex hull of their feasible solutions.
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This page is a summary of: Effective network formulations for lot sizing with backlogging in two-level serial supply chains, IIE Transactions, April 2015, Taylor & Francis,
DOI: 10.1080/0740817x.2015.1027457.
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