Eh. Aghezzaf et La. Wolsey, MODELING PIECEWISE-LINEAR CONCAVE COSTS IN A TREE PARTITIONING PROBLEM, Discrete applied mathematics, 50(2), 1994, pp. 101-109
An important modelling question is that of how to obtain tight mixed i
nteger programming formulations for problems involving piecewise linea
r concave cost functions. We examine in detail a tree partitioning mod
el, and then specialise the results to the economic lot-sizing problem
.