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Service-Level Oriented Lot Sizing Under Stochastic Demand

In: Operations Research Proceedings 2007

Author

Listed:
  • Lars Fischer

    (Universität zu Köln)

  • Sascha Herpers

    (Universität zu Köln)

  • Michael Manitz

    (Universität zu Köln)

Abstract

In this paper, we analyze lot sizing under stochastic demand. The lot sizes are determined such that a target service level is met. This optimization procedure requires the calculation of the shortages and their probability distribution considering the inventory dynamics. For an example, we compare different production plans that reveal the influence of a service-level constraint on lot sizing.

Suggested Citation

  • Lars Fischer & Sascha Herpers & Michael Manitz, 2008. "Service-Level Oriented Lot Sizing Under Stochastic Demand," Operations Research Proceedings, in: Jörg Kalcsics & Stefan Nickel (ed.), Operations Research Proceedings 2007, pages 351-356, Springer.
    • Handle: RePEc:spr:oprchp:978-3-540-77903-2_54
    DOI: 10.1007/978-3-540-77903-2_54
    as

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