Dynamic Lot-Sizing When Demand Timing Is Uncertain

Michael C. Burstein · Christopher H. Nevison

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Supply Chain and Inventory Management Management and Optimization Techniques Scheduling and Optimization Algorithms

Abstract

We characterize optimal solutions for the dynamic lot-sizing problem when demand quantities are known, but their timing is uncertain. The characterization states that for some possible history of demands following a period of production, there is a period with zero inventory before another period with production. Using this characterization, we outline a dynamic program for the solution of these problems. Some results from sample problems illustrate the variety of optimal solutions that can occur.

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2004Dynamic Version of the Economic Lot Size Model 1969A Backlogging Model and a Multi-Echelon Model of a Dynamic Economic Lot Size Production System—A Network Approach 1976MATERIAL REQUIREMENTS PLANNING UNDER UNCERTAINTY

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