The dynamic lot-sizing problem (DLSP)‎ : review, extensions, and comparison

Abstract EN

The problem considered in this paper is the single product deterministic and discrete time-varying demand inventory lot-sizing problem with finite horizon.

Although several heuristics have been proposed, the effort devoted to reviewing and comparing these heuristics is still relatively modest.

In this paper we present an extensive review of the current literature related to the above problem and propose new simple heuristics that are based on straightforward modifications of existing heuristics.

We conduct an extensive assessment of the effectiveness, in terms of the cost deviation from optimality and computational time, of thirteen heuristics.

We also report the results of 5400 randomly generated problems under different demand patterns and cost structures.

Finally, we recommend two computational effective heuristics for determining near-optimal ordering schedules.