Extensions of the Planning Horizon Theorem in the Dynamic Lot Size Model

This paper considers an N period production planning problem in which a sequence of known demands d 1 , d 2 ,…, d N must be satisfied. The cost of production in period t consists of a setup cost K t plus a marginal cost per unit c t . The cost of carrying a unit of inventory into period t is h t − 1 . An optimal policy is a production plan that satisfies demand at minimum cost. The main results of the paper are a theorem that decreases the computational effort required to find optimal policies and a theorem that establishes the existence of planning horizons. The results of these two theorems are combined in a forward algorithm for the efficient solution of the problem.

• 저널Management Science · 15(5) · 268–277
• 토픽Supply Chain and Inventory Management · Management Information Systems
• DOI10.1287/mnsc.15.5.268
• 저자Gary D. Eppen, F. J. Gould, B. Peter Pashigian