Mixed backlogging and outsourcing models with non-decreasing inventory capacity

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Abstract

This paper addresses a dynamic lot sizing problem with mixed backlogging and outsourcing and non-decreasing inventory capacity. In this problem, outsourcing can occur in a period even if the inventory level at that period is positive, and outsourcing level at each period can not exceed the demand of that period. The outsourcing, backlogging and holding costs are linear. Production cost may include setup cost, and the production capacity is unlimited. The goal is to satisfy all demands in planning horizon and minimize the total cost. Some properties of an optimal solution are introduced. Based on these properties a dynamic programming algorithm with complexity 0(T4) is developed to solve this problem, where T is number of periods in planning horizon. Numeric results show that our algorithm is high performance with the length of planning horizon.

Original languageEnglish
Title of host publicationProceedings - ISDA 2006
Subtitle of host publicationSixth International Conference on Intelligent Systems Design and Applications
Pages1161-1166
Number of pages6
DOIs
StatePublished - 2006
Externally publishedYes
EventISDA 2006: Sixth International Conference on Intelligent Systems Design and Applications - Jinan, China
Duration: 16 Oct 200618 Oct 2006

Publication series

NameProceedings - ISDA 2006: Sixth International Conference on Intelligent Systems Design and Applications
Volume1

Conference

ConferenceISDA 2006: Sixth International Conference on Intelligent Systems Design and Applications
Country/TerritoryChina
CityJinan
Period16/10/0618/10/06

Keywords

  • Backlogging
  • Dynamic programming
  • Inventory capacity
  • Lot sizing
  • Outsourcing

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