A new solution method for the finite-horizon discrete-time EOQ problem

Department of Logistics2009-2010 > Academic research: refereed > Publication in refereed journalAccepted ManuscriptPublishe

A discrete EOQ problem is solvable in O(logn) time

The Economic Order Quantity problem is a fundamental problem of inventory management. An optimal solution to this problem in a closed form exists under the assumption that time and the product are continuously divisible and demand occurs at a constant rate [lambda]. We prove that a discrete version of this problem, in which time and the product are discrete is solvable in O(logn) time, where n is the length of the time period where the demand takes place. The key elements of our approach are a reduction of the original problem to a discrete minimization problem of one variable representing the number of orders and a proof that the objective function of this problem is convex. According to our approach, optimal order sizes can take at most two distinct values: and , where k* is the optimal number of orders.

Milk Run Design: Definitions, Concepts and Solution Approaches

Efficient inbound networks in the European automotive industry rely on a set of different transport concepts including milk runs - understood as regularly scheduled pickup tours. The complexity of designing such a mixed network makes decision support necessary: In this book we provide definitions, mathematical models and a solution method for the Milk Run Design problem and introduce indicators assessing the performance of established milk runs in relation to alternative transport concepts

Milk Run Design: Definitions, Concepts and Solution Approaches

Efficient inbound networks in the European automotive industry rely on a set of different transport concepts including milk runs - understood as regularly scheduled pickup tours. The complexity of designing such a mixed network makes decision support necessary: In this thesis we provide definitions, mathematical models and a solution method for the Milk Run Design problem and introduce indicators assessing the performance of established milk runs in relation to alternative transport concepts