Concave cost capacitated network flows and multi-period lotsizing problems with uncertain demands
- Bangkok : Asian Institute of Technology, 1990
- 105 p.
- Dissertation ; no. IE-90-01 .
- Asian Institute of Technology. Dissertation ; no. IE-90-01 .
A dissertation submitted in partial fulfilment of the requirements for the degree of Doctor of Technical Sciences, School of Engineering and Technology
Thesis (Ph.D.) - Asian Institute of Technology, 1990
The dissertation considers am ultiperiod lotsizing problem on a complex production or inventory system where demaqds are random. The problem is formulated as a stochastic network flow model which also incorporates service level constraints. The model is approximated with a capacitated and deterministic network flow problem with concave cost function. A scaling method is proposed to solve this approximate flow problem. The method is efficient and produces an exact local optimum flow. The Lagrange relaxation method is also applied to find lower bounds for the optimum system cost. As an application, a stochastic coordinated multi-item lotsizing problem is considered and .solved. Some computation experiments are carried out, showing the efficiency of the new methods in handling practical problems.