Joint Pricing and Lot-Sizing Problem with Variable Capacity

Paulin Couzon1, Yassine Ouazene2, Farouk Yalaoui1

  • 1University of Technology of Troyes
  • 2Université de Technologie de Troyes



Invited Session


11:00 - 12:28 | Wed 28 Aug | 015 | WeAT6

Operations Research Techniques for Complex Systems Scheduling

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This paper presents an extension to the classical capacitated lot-sizing problem. Demand for the products is price-dependent and modelized as an isoelastic function. The capacity is not considered as a parameter anymore, it becomes a decision variable for the company as the production, inventory and pricing decisions. This variable capacity leads to two variants of the problem: one with a time-dependent capacity and the other one a uniform capacity over the periods. We propose heuristic methods, which are based on Lagrangian multipliers, to solve variations of the problem. The methods provide high-quality results.

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