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A Study on Dynamic Lot Sizing Problem with Random Demand  

Kim, Chang Hyun (Division of Transportation and Logistics Systems Engineering, Yosu National University)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.31, no.3, 2005 , pp. 194-200 More about this Journal
Abstract
A stochastic dynamic lot sizing problem for multi-item is suggested in the case that the distribution of the cumulative demand is known over finite planning horizons and all unsatisfied demand is fully backlogged. Each item is produced simultaneously at a variable ratio of input resources employed whenever setup is incurred. A dynamic programming algorithm is proposed to find the optimal production policy, which resembles the Wagner-Whitin algorithm for the deterministic case problem but with some additional feasibility constraints.
Keywords
inventory; dynamic lot sizing problem; random demand;
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