Cpm. Vanhoesel et al., POLYHEDRAL CHARACTERIZATION OF THE ECONOMIC LOT-SIZING PROBLEM WITH START-UP COSTS, SIAM journal on discrete mathematics, 7(1), 1994, pp. 141-151
A class of strong valid inequalities is described for the single-item
uncapacitated economic lot-sizing problem with start-up costs. It is s
hown that these inequalities yield a complete polyhedral characterizat
ion of the problem. The corresponding separation problem is formulated
as a shortest path problem. Finally, a reformulation as a plant locat
ion problem is shown to imply the class of strong valid inequalities,
which shows that this reformulation is tight, also.