An Optimal Solution Algorithm for Joint Replenishment Problem with Piecewise Linear Warehousing Cost

摘要

In the general lot sizing replenishment problem, warehousing costs are considered part of the inventory holding cost. When decision makers need warehouse space for the storage of their products, they generally take the warehousing cost into the inventory cost. In this study, we investigate an optimal lot sizing and replenishment problem under piecewise linear warehousing cost structure. In this study, we investigate an optimal lot sizing and replenishment problem under piecewise linear warehousing cost structure. We extend Goh et al. s (2001) study, and formulate a model for multiple stock-keeping units (Multi-SKUs) with joint inventory costs. To solve this problem. we conduct a full theoretical analysis on the optimality structure. By utilizing our theoretical results, we derive an effective search algorithm that is able to obtain an optimal solution for optimal lot sizing and replenishment problem under piecewise linear warehousing cost structure. Based on our randoM experiments, we demonstrate that our search algorithM out-performs Goh et al. 's (2001).