Abstract
This paper introduces a simple heuristic for a quadratic programming sub-problem within a Lagrangean relaxation heuristic for a dynamic pricing and lot-size problem. This simple heuristic is demonstrated to work well on both ‘standard problem instances’ from the CLSP-literature, as well as on very large-scale cases. Additionally, we introduce price constraints within the framework of dynamic pricing, discuss their relevance in a real world market modelling, and demonstrate their applicability within this algorithmic framework.
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Haugen, K.K., Olstad, A. & Pettersen, B.I. Solving Large-scale Profit Maximization Capacitated Lot-size Problems by Heuristic Methods. J Math Model Algor 6, 135–149 (2007). https://doi.org/10.1007/s10852-006-9053-2
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DOI: https://doi.org/10.1007/s10852-006-9053-2