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

Fingerprint

Lot Sizing
Economics
Mixed Model
Setup Cost
Polynomial Algorithm
Deterministic Model
Production Systems
Model
Stochastic Model
Stochastic models
Simulation Study
Uncertainty
Polynomials
Demonstrate
Costs

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

Cite this

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Some New Dynamic Economic Lot Sizing Models. / Yang, Jian; Yu, Gang.

In: Dynamics of Continuous, Discrete and Impulsive Systems Series B: Application and Algorithm, Vol. 9, No. 3, 01.09.2002, p. 403-419.

Research output: Contribution to journalArticle

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