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Heuristics for Dynamic Lot-Sizing with Plan Setup Cost in a Rolling Horizon Environment

Yooseong Choi, In‐Jae Jeong

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Abstract

Researches of dynamic lot-sizing problem in a rolling horizon environment have not considered plan setup cost occurring when a plan is issued. This research deals with the dynamic single-level lot-sizing problem with plan setup cost and proposes heuristics for restricted forecast of demands beyond the planning horizon. Moreover, we provide test results to compare proposed heuristics with existing lot-sizing algorithms.

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What this paper is about

Researches of dynamic lot-sizing problem in a rolling horizon environment have not considered plan setup cost occurring when a plan is issued. This research deals with the dynamic single-level lot-sizing problem with plan setup cost and proposes heuristics for restricted forecast of demands beyond the planning horizon. Moreover, we provide test results to compare proposed heuristics with existing lot-sizing algorithms.

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Available abstract

Researches of dynamic lot-sizing problem in a rolling horizon environment have not considered plan setup cost occurring when a plan is issued. This research deals with the dynamic single-level lot-sizing problem with plan setup cost and proposes heuristics for restricted forecast of demands beyond the planning horizon. Moreover, we provide test results to compare proposed heuristics with existing lot-sizing algorithms.

Key concepts: Heuristics, Sizing, Plan (archaeology), Time horizon, Computer science, Horizon, Mathematical optimization, Operations research

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