A Lower Bounding Structure for Lot-Size Scheduling Problems

This paper discusses efficient methods for determining optimal lower bounds (and concomitant dual variables) for lot-size problems of both fixed and variable capacity. The approach unifies lower bounding procedures for several common forms of the problem on the basis of generalized duality theory. Through the optimal (lower bounding) dual solution, a production plan can be generated that when “rounded” to feasibility may be optimal or near optimal for problems of appropriate configuration.