Dynamic lot sizing: exact solution of the Wagner-Whitin
model
The
optimal solution of the Single-Level Uncapacitated LotSizing Problem (SLULSP)
is computed with the dynamic programming procedure due to Wagner and Whitin.
The
algorithm is also available in the module MRP successive
planning .
Symbols:
| i
|
index
of periods |
| s(i)
|
setup
cost in period i |
| h(i) |
holding cost in period i |
| p(i) |
variable
production cost in period i |
| d(i) |
demand
in period i |
| f(i) |
minimum
costs for a production plan covering the first i periods |
| q(i)
|
lot
size in period i |
Assumptions:
- deterministic
dynamic demands
- deterministic
setup costs, holding costs and production costs
- no capacity consideration
Literature:
-
Nahmias (1997), Chapter 6.4
|
