Skip to main content
Log in

On the computational complexity of uncapacitated multi-plant lot-sizing problems

  • Short Communication
  • Published:
Optimization Letters Aims and scope Submit manuscript

Abstract

Production and inventory planning have become crucial and challenging in nowadays competitive industrial and commercial sectors, especially when multiple plants or warehouses are involved. In this context, this paper addresses the complexity of uncapacitated multi-plant lot-sizing problems. We consider a multi-item uncapacitated multi-plant lot-sizing problem with fixed transfer costs and show that two of its very restricted special cases are already NP-hard. Namely, we show that the single-item uncapacitated multi-plant lot-sizing problem with a single period and the multi-item uncapacitated two-plant lot-sizing problem with fixed transfer costs are NP-hard. Furthermore, as a direct implication of the proven results, we also show that a two-echelon multi-item lot-sizing with joint setup costs on transportation is NP-hard.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

References

  1. Akbalik, A., Penz, B., Rapine, C.: Multi-item uncapacitated lot sizing problem with inventory bounds. Optim. Lett. 9(1), 143–154 (2015)

    Article  MathSciNet  Google Scholar 

  2. Arkin, E., Joneja, D., Roundy, R.: Computational complexity of uncapacitated multi-echelon production planning problems. Oper. Res. Lett. 8(2), 61–66 (1989)

    Article  MathSciNet  Google Scholar 

  3. Bitran, G.R., Yanasse, H.H.: Computational complexity of the capacitated lot size problem. Manag. Sci. 28(10), 1174–1186 (1982)

    Article  MathSciNet  Google Scholar 

  4. Brahimi, N., Absi, N., Dauzère-Pérès, S., Nordli, A.: Single-item dynamic lot-sizing problems: an updated survey. Eur. J. Oper. Res. 263(3), 838–863 (2017)

    Article  MathSciNet  Google Scholar 

  5. Carvalho, D.M., Nascimento, M.C.: Lagrangian heuristics for the capacitated multi-plant lot sizing problem with multiple periods and items. Comput. Oper. Res. 71, 137–148 (2016)

    Article  MathSciNet  Google Scholar 

  6. Carvalho, D.M., Nascimento, M.C.: A kernel search to the multi-plant capacitated lot sizing problem with setup carry-over. Comput. Oper. Res. 100, 43–53 (2018)

    Article  MathSciNet  Google Scholar 

  7. Cornuéjols, G., Nemhauser, G.L., Wolsey, L.A.: The uncapacitated facility location problem. In: Mirchandani, P., Francis, R. (eds.) Discrete Location Theory Discrete Location Theory, pp. 119–171. Wiley, New York (1990)

    Google Scholar 

  8. Cunha, J.O., Melo, R.A.: A computational comparison of formulations for the economic lot-sizing with remanufacturing. Comput. Ind. Eng. 92, 72–81 (2016)

    Article  Google Scholar 

  9. Cunha, J.O., Melo, R.A.: On reformulations for the one-warehouse multi-retailer problem. Ann. Oper. Res. 238(1), 99–122 (2016)

    Article  MathSciNet  Google Scholar 

  10. Darvish, M., Larrain, H., Coelho, L.C.: A dynamic multi-plant lot-sizing and distribution problem. Int. J. Prod. Res. 54(22), 6707–6717 (2016)

    Article  Google Scholar 

  11. Jans, R., Degraeve, Z.: Modeling industrial lot sizing problems: a review. Int. J. Prod. Res. 46(6), 1619–1643 (2008)

    Article  Google Scholar 

  12. Melo, R.A., Ribeiro, C.C.: Formulations and heuristics for the multi-item uncapacitated lot-sizing problem with inventory bounds. Int. J. Prod. Res. 55(2), 576–592 (2017)

    Article  Google Scholar 

  13. Melo, R.A., Wolsey, L.A.: Uncapacitated two-level lot-sizing. Oper. Res. Lett. 38(4), 241–245 (2010)

    Article  MathSciNet  Google Scholar 

  14. Melo, R.A., Wolsey, L.A.: MIP formulations and heuristics for two-level production-transportation problems. Comput. Oper. Res. 39(11), 2776–2786 (2012)

    Article  MathSciNet  Google Scholar 

  15. Nascimento, M.C., Resende, M.G., Toledo, F.M.: GRASP heuristic with path-relinking for the multi-plant capacitated lot sizing problem. Eur. J. Oper. Res. 200(3), 747–754 (2010)

    Article  Google Scholar 

  16. Nascimento, M.C., Yanasse, H.H., Carvalho, D.M.: The multi-plant lot sizing problem with multiple periods and items. In: Martí, R., Panosand, P., Resende, C. (eds.) Handbook of Heuristics, pp. 1–16. Springer, Berlin (2018)

    Google Scholar 

  17. Park, Y.B.: An integrated approach for production and distribution planning in supply chain management. Int. J. Prod. Res. 43(6), 1205–1224 (2005)

    Article  Google Scholar 

  18. Pochet, Y., Wolsey, L.A.: Production Planning by Mixed Integer Programming. Springer, Berlin (2006)

    MATH  Google Scholar 

  19. Retel Helmrich, M.J., Jans, R., van den Heuvel, W., Wagelmans, A.P.M.: Economic lot-sizing with remanufacturing: complexity and efficient formulations. IIE Trans. 46(1), 67–86 (2014)

    Article  Google Scholar 

  20. Sambasivan, M.: Uncapacitated and capacitated lot sizing for multi-plant, multi-item, multi-period problems with inter-plant transfers PhD Thesis. Tuscaloosa University of Alabama (1994)

  21. Sambasivan, M., Schmidt, C.: A heuristic procedure for solving multi-plant, multi-item, multi-period capacitated lot-sizing problems. Asia-Pac. J. Oper. Res. 19, 87–106 (2002)

    MathSciNet  MATH  Google Scholar 

  22. Sambasivan, M., Yahya, S.: A lagrangean-based heuristic for multi-plant, multi-item, multi-period capacitated lot-sizing problems with inter-plant transfers. Comput. Oper. Res. 32(3), 537–555 (2005)

    Article  Google Scholar 

  23. Wagner, H.M., Whitin, T.M.: Dynamic version of the economic lot size model. Manag. Sci. 5(1), 89–96 (1958)

    Article  MathSciNet  Google Scholar 

  24. Zangwill, W.I.: A backlogging model and a multi-echelon model of a dynamic economic lot size production system—A network approach. Manag. Sci. 15(9), 506–527 (1969)

    Article  Google Scholar 

Download references

Acknowledgements

The authors are thankful to two anonymous reviewers for their comments which helped improving the quality of this paper. Work of Rafael A. Melo was supported by the State of Bahia Research Foundation (FAPESB); and the Brazilian National Council for Scientific and Technological Development (CNPq).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Rafael A. Melo.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Cunha, J.O., Kramer, H.H. & Melo, R.A. On the computational complexity of uncapacitated multi-plant lot-sizing problems. Optim Lett 15, 803–812 (2021). https://doi.org/10.1007/s11590-020-01615-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11590-020-01615-x

Keywords

Navigation