Capacitated dynamic lot-sizing problem with delivery/production time windows

In this paper we generalize the classical dynamic lot-sizing problem by considering production capacity constraints as well as delivery and/or production time windows. Utilizing an untraditional decomposition principle, we develop a polynomial-time algorithm for computing an optimal solution for the problem under the assumption of non-speculative costs. The proposed solution methodology is based on a dynamic programming algorithm that runs in O(nT^4) time, where n is the number of demands and T is the length of the planning horizon.

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