Note—An Improved Algorithm for the Stationary Cost Dynamic Lot Size Model with Backlogging

Abstract

For the important special case that costs are linear and stationary over time, an improved algorithm is presented for the dynamic lot size model with backlogging which is comparable in difficulty to the standard no-backlogging algorithm. Planning horizon procedures analogous to those given by Lundin-Morton and Blackburn-Kunreuther are also developed. The results are also generalized to the concave cost case.

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