A Fully Polynomial Approximation Scheme for Single-Product Scheduling in a Finite Capacity Facility

• Published in: Operations research Vol. 38; no. 1; pp. 70 - 83
• Main Authors: Gavish, Bezalel, Johnson, Robert E
• Format: Journal Article
• Language: English
• Published: Baltimore, Md INFORMS 01.01.1990; Operations Research Society of America
• Subjects: Algorithms; Approximation; Capital costs; Carrying costs; Cost functions; Dynamic programming; Production costs; production/scheduling: lot sizing approximations and production planning; Scheduling; Unit costs; Variable costs
• ISSN: 0030-364X; 1526-5463
• DOI: 10.1287/opre.38.1.70

This paper considers a version of the economic lot sizing problem for a single product produced in a facility of finite capacity over a finite time horizon with specifiable start and end conditions. A set of algorithms is presented that will approximate the optimal production schedule to a given allowable error ( ). Algorithms with computation time bounds of O (1/ 2 ) are presented which allow for setups of finite length, setups with or without direct cash flow, quite general cost and demand functions, and a wide variety of production policy constraints. The procedures make no a priori assumptions about the form of the optimal solution. Numerical results are included.