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Solving a Production and Inventory Model with a Minimum Lot Size Constrain

Author

Listed:
  • Richter, Knut
  • Okhrin, Irena

Abstract

The paper deals with the analysis of a special dynamic production and inventory model. In this model logical restrictions to fulfill an accepted constant minimal level of the production lot size are incorporated, instead of keeping setup cost in the objective function, as it is common in many other models. Detailed optimality conditions are derived, which make possible the application of a simple dynamic programming recursion procedure.

Suggested Citation

  • Richter, Knut & Okhrin, Irena, 2007. "Solving a Production and Inventory Model with a Minimum Lot Size Constrain," Discussion Papers 261, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    • Handle: RePEc:zbw:euvwdp:261
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