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Dynamic Version of the Economic Lot Size Model

Author

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  • Harvey M. Wagner

    (Stanford University, Stanford, California)

  • Thomson M. Whitin

    (Massachusetts Institute of Technology, Cambridge, Massachusetts)

Abstract

A forward algorithm for a solution to the following dynamic version of the economic lot size model is given: allowing the possibility of demands for a single item, inventory holding charges, and setup costs to vary over N periods, we desire a minimum total cost inventory management scheme which satisfies known demand in every period. Disjoint planning horizons are shown to be possible which eliminate the necessity of having data for the full N periods.

Suggested Citation

  • Harvey M. Wagner & Thomson M. Whitin, 2004. "Dynamic Version of the Economic Lot Size Model," Management Science, INFORMS, vol. 50(12_supple), pages 1770-1774, December.
    • Handle: RePEc:inm:ormnsc:v:50:y:2004:i:12_supplement:p:1770-1774
    DOI: 10.1287/mnsc.1040.0262
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    References listed on IDEAS

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    1. Richard Bellman, 1957. "On a Dynamic Programming Approach to the Caterer Problem--I," Management Science, INFORMS, vol. 3(3), pages 270-278, April.
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    Cited by:

    1. Fleischhacker, Adam J. & Zhao, Yao, 2011. "Planning for demand failure: A dynamic lot size model for clinical trial supply chains," European Journal of Operational Research, Elsevier, vol. 211(3), pages 496-506, June.
    2. Janssen, Larissa & Diabat, Ali & Sauer, Jürgen & Herrmann, Frank, 2018. "A stochastic micro-periodic age-based inventory replenishment policy for perishable goods," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 445-465.
    3. Xiao, Yiyong & Kaku, Ikou & Zhao, Qiuhong & Zhang, Renqian, 2011. "A reduced variable neighborhood search algorithm for uncapacitated multilevel lot-sizing problems," European Journal of Operational Research, Elsevier, vol. 214(2), pages 223-231, October.
    4. Archetti, Claudia & Bertazzi, Luca & Grazia Speranza, M., 2014. "Polynomial cases of the economic lot sizing problem with cost discounts," European Journal of Operational Research, Elsevier, vol. 237(2), pages 519-527.
    5. Xiao, Yiyong & Zhang, Renqian & Zhao, Qiuhong & Kaku, Ikou & Xu, Yuchun, 2014. "A variable neighborhood search with an effective local search for uncapacitated multilevel lot-sizing problems," European Journal of Operational Research, Elsevier, vol. 235(1), pages 102-114.

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