On the polyhedral structure of two-level lot-sizing problems with supplier selection

Ayşe N. Arslan, Jean Philippe P. Richard, Yongpei Guan

Research output: Contribution to journalArticlepeer-review

Abstract

In this article, we study a two-level lot-sizing problem with supplier selection (LSS), which is an NP-hard problem arising in different production planning and supply chain management applications. After presenting various formulations for LSS, and computationally comparing their strengths, we explore the polyhedral structure of one of these formulations. For this formulation, we derive several families of strong valid inequalities, and provide conditions under which they are facet-defining. We show numerically that incorporating these valid inequalities within a branch-and-cut framework leads to significant improvements in computation.

Original languageEnglish (US)
Pages (from-to)647-666
Number of pages20
JournalNaval Research Logistics
Volume63
Issue number8
DOIs
StatePublished - Dec 1 2016

Bibliographical note

Funding Information:
The authors wish to thank the two anonymous reviewers and the associate editor for their valuable insights and suggestions that have helped improve the presentation of this article. This project is partially supported by Office of Naval Research Young Investigator Award N000141010749 and National Science Foundation grant CMMI-1200616.

Keywords

  • Cutting planes
  • lot-sizing
  • polyhedral study
  • supplier selection

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