Lot-Sizing with Production and Delivery Time Windows

Abstract

We study two different lot-sizing problems with time windows that have been proposed recently. For the case of production time windows, in which each client specific order must be produced within a given time interval, we derive tight extended formulations for both the constant capacity and uncapacitated problems with Wagner-Whitin (non-speculative) costs. For the variant with nonspecific orders, known to be equivalent to the problem in which the time windows can be ordered by time, we also show equivalence to the basic lot-sizing problem with upper bounds on the stocks. Here we derive polynomial time dynamic programming algorithms and tight extended formulations for the uncapacitated and constant capacity problems with general costs.

For the problem with delivery time windows, we use a similar approach to derive tight extended formulations for both the constant capacity and uncapacitated problems with Wagner-Whitin (non-speculative) costs.

Keywords: Production time windows, lot-sizing, mixed integer programming