Some New Dynamic Economic Lot Sizing Models

Jian Yang, Gang Yu

Research output: Contribution to journalArticle

Abstract

We introduce a dynamic economic lot sizing problem which takes into account both the production setup cost and the designed-and-yet stretchable production capacity. Demands and the control on production activities drive the evolution of the production system. We give a pseudo-polynomial algorithm for the problem when future demands are known. When there is uncertainty in future demands and there is no holding of inventory, we propose a two-layered solution process which makes the demand acceptance decision first and decides the level of production next. We also construct a mixed model which combines the features of both deterministic and stochastic models. The model not only utilizes currently-known information but also anticipates for the future. Our simulation study demonstrates the advantage of the mixed model.

Original languageEnglish (US)
Pages (from-to)403-419
Number of pages17
JournalDynamics of Continuous, Discrete and Impulsive Systems Series B: Application and Algorithm
Volume9
Issue number3
StatePublished - Sep 1 2002
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Discrete Mathematics and Combinatorics
  • Applied Mathematics

Keywords

  • Computer Simulation
  • Dynamic Programming
  • Just-in-Time
  • Lot Sizing
  • Pesudo-polynomial Algorithm
  • Successive Approximation

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