Production and Operations Management Consulting.
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 Demand Explosion.
|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|
- deterministic dynamic demands
- deterministic setup costs, holding costs and production costs
- no capacity consideration
- Nahmias (1997), Chapter 6.4