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Dynamic version of the economic lot size model. (English) Zbl 0977.90500

From the text: A forward algorithm for a solution to the following dynamic version of the economic lot size model is given: allowing the possibility of demands for a single item, inventory holding charges, and setup costs to vary over N periods, we desire a minimum total cost inventory management scheme which satisfies known demand in every period. Disjoint planning horizons are shown to be possible which eliminate the necessity of having data for the full N periods.

Some of the results can be obtained as special instances of the horizon theorem of A. Charnes, W. W. Cooper and B. Mellon [Econometrica 23, 307-323 (1955; Zbl 0064.39601)].


MSC:
90B05Inventory, storage, reservoirs