Dependent Policy Solutions for Order Quantity Problems with Time Variation Demand

The abnormal time periods and normal time periods are distinguished in the planning horizon in light of the EOQ and the time varying demands in the periods. The performance of EOQ policy,dependent policies and independent policies are discussed and the optimal structure of dependent policies for EOQ problems with time varying demands is proposed. A heuristics combined with dependent policies is presented to solve a type of time varying demands with which the first time period is normal. The theory analysis and some simulation showed that the proposed heuristic is better than S M in the case that there exist multiple normal periods in the planning horizon.