Abstract

Abstract
This paper presents two new solution procedures for a deterministic lot size problem, a matrix algorithm and a heuristic matrix method. The algorithm is based on the dual of a linear programming model formulation of the lot size problem, and it provides optimal solutions even in the general case of time-varying parameters. A comparison of the efficiency of the new solution procedures with well-known methods is developed. New applications of the techniques described within the fields of engineering (optimal design of a pump-pipe system) and economics (a model for import-planning) are referred to. © 1984 Taylor & Francis Group, LLC.

Abstract
In this paper the problem of minimizing the total cost of a pump-pipe system in series is considered. The route of the pipeline and the number of pumping stations are known. The optimization will then consist in determining the control variables, diameter and thickness of the pipe and the size of the pumps. A general mathematical model is formulated and Dynamic Programming is used to find an optimal solution. Practical reasons, derived from the techniques engineers generally use to cope with such problems, and special characteristics of the mathematical structure of the model justified the consideration of particular cases of the system. This analysis, based on Dynamic Programming, enabled us to elaborate a simple heuristic method, condensing those techniques, and supplied sufficient conditions for the heuristic to operate as an optimal procedure. The solution of a realistic example confirms the viability of the conditions developed and tests the formulation (also presented) of the optimization problem by the Discrete-Time Optimum Principle for the general control problem.