Conference Name Proceedings of the 5th International Conference on Cooperation and Promotion of Information Resources in Science and Technology (COINFO 2010 E-BOOK)

Beijing,China,11.27-11.29,2010

ISBN: 978-1-935068-43-3 Scientific Research Publishing, USA

E-Book 754pp Pub. Date: November 2010

Category: Engineering

Price: $110

Title: Competitive Analysis of Online Lot-Sizing Heuristics with Backlogging under Finite Rolling-Horizon
Source: Conference Name Proceedings of the 5th International Conference on Cooperation and Promotion of Information Resources in Science and Technology (COINFO 2010 E-BOOK) (pp 646-650)
Author(s): Bin Liu, School of Economics and Management, Beijing, China ;Operations Management and Strategic Decision Research Center, Beijing University of Chemical Technology, Beijing, China
Chunlin Xin, School of Economics and Management, Beijing, China ;Operations Management and Strategic Decision Research Center, Beijing University of Chemical Technology, Beijing, China
Fengwu Shen, School of Economics and Management, Beijing, China ;Operations Management and Strategic Decision Research Center, Beijing University of Chemical Technology, Beijing, China
Abstract: This paper considers the single-item uncapacitated dynamic lot-sizing problem with backlogging in a finite rolling-horizon environment. By permitting backlogging, which means that the inventories can be negative, the assumption with the first setup in period 1 may be no longer appropriate [1]. Instead we develop a simple class of online heuristics with backlogging and use competitive analysis to derive worst-case performance of heuristic. Our analysis shows that the online heuristic with backlogging has a worst-case ratio of at most 2 and this result is best-possible for a finite rolling-horizon.
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