Approximation Formulations for the Single Product Capacitated Lot Size Problem
Author(s)Britan, Gabriel R.; Matsuo, Hirofumi
We consider two approximation formulations for the single product capacitated lot size problem. They correspond respectively to a restriction of the number of production policies and to the rounding of demands up to multiples of a constant. After briefly reviewing the literature within a new % ~ framework, we discuss the relations between these approximation formulations. Next, we provide relative error bounds and algorithms for solving the approximation problems. We demonstrate that these approximation formulations require a significantly smaller number of calculations than the original formulation, and that the relative error bounds are satisfactory for practical purposes.
Massachusetts Institute of Technology, Operations Research Center
Operations Research Center Working Paper;OR 120-83