We study the polyhedral structure of the static probabilistic lot-sizing (SPLS) problem and propose facets that subsume existing inequalities for this problem. In addition, the proposed inequalities give the convex hull description of a related stochastic lot-sizing problem. We propose a new compact formulation that exploits the simple recourse structure, which can be applied to general chance-constrained programs with simple recourse. The computational results show that the proposed inequalities and the new formulation are effective for SPLS.
View A Polyhedral Study of the Static Probabilistic Lot-Sizing Problem