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Dynamic lot sizing: least unit-cost procedure

The Single-Level Uncapacitated LotSizing Problem (SLULSP) is computed with the heuristic procedure due to Silver and Meal.


t,i indices of periods
s setup costs
h holding costs
D(t) demand in period t
q(t) lot size in period t
cstückt(t,i) average costs per unit if the total demand of the interval t to i is produced in period t


  • deterministic dynamic demands
  • deterministic setup costs and holding costs
  • no capacity consideration


- Nahmias (1997), Chapter 6.3

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