The uncapacitated lot-sizing problem with sales and safety stocks

We examine a variant of the uncapacitated lot-sizing model of Wagner-Whitin involving sales instead of fixed demands, and lower bounds on stocks. Two extended formulations are presented, as well as a dynamic programming algor ithm and a complete description of the convex hull of solutions. When the l ower bounds on stocks are non-decreasing over time, it is possible to descr ibe an extended formulation for the problem and a combinatorial separation algorithm for the convex hull of solutions. Finally when the lower bounds o n stocks are constant, a simpler polyhedral description is obtained for the case of Wagner-Whitin costs.