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The linear dynamic lot size problem with minimum order quantities

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  • Okhrin, Irena
  • Richter, Knut

Abstract

This paper continues the analysis of a special uncapacitated single item lot sizing problem where a minimum order quantity restriction, instead of the setup cost, guarantees a certain level of production lots. A detailed analysis of the model and an investigation of the particularities of the cumulative demand structure allowed us to develop a solution algorithm based on the concept of minimal sub-problems. We present an optimal solution to a minimal sub-problem in an explicit form and prove that it serves as a construction block for the optimal solution of the initial problem. The computational tests and the comparison with the published algorithm confirm the efficiency of the solution algorithm developed here. --

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Bibliographic Info

Paper provided by European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics in its series Discussion Papers with number 283.

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Date of creation: 2010
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Handle: RePEc:zbw:euvwdp:283

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Keywords: lot sizing problem; minimum order quantity; dynamic programming;

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  1. Bolle, Friedel & Kritikos, Alexander S., 2004. "Altruistic Behavior Under Incomplete Information," Discussion Papers 229, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
  2. Vogel, Claudia & Heimel, Jana & Bolle, Friedel, 2004. "Crowding out and imitation behavior in the solidarity game," Discussion Papers 223, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
  3. Tan, Jonathan H.W., 2006. "Religion and social preferences: An experimental study," Economics Letters, Elsevier, vol. 90(1), pages 60-67, January.
  4. Jonathan Tan & Friedel Bolle, 2006. "On the Relative Strengths of Altruism and Fairness," Theory and Decision, Springer, vol. 60(1), pages 35-67, 02.
  5. Baier, Antje & Bolle, Friedel, 2005. "Cyclical price fluctuations caused by information inertia : evidence from the German call-by-call telephone market," Discussion Papers 225, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
  6. Alexander Kritikos & Frank Wiesner, 2000. "Ein zweiter Kreditmarkt für eine zweite Chance," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 1(3), pages 357-378, 08.
  7. M Perugini & J H W Tan & D J Zizzo, 2010. "Which is the More Predictable Gender? Public Good Contribution and Personality," Economic Issues Journal Articles, Economic Issues, vol. 15(1), pages 83-110, March.
  8. Kritikos, Alexander & Bolle, Friedel, 2001. "Distributional concerns: equity- or efficiency-oriented?," Economics Letters, Elsevier, vol. 73(3), pages 333-338, December.
  9. Tan, Jonathan H.W. & Zizzo, Daniel John, 2008. "Groups, cooperation and conflict in games," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 1-17, February.
  10. Friedel Bolle & Alexander Kritikos, 2006. "Reciprocity, Altruism, Solidarity: A Dynamic Model," Theory and Decision, Springer, vol. 60(4), pages 371-394, 06.
  11. Pichtchoulov, Grigori & Richter, Knut, 2005. "Economic effects of mobile technologies on operations of sales agents," Discussion Papers 226, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
  12. Kritikos, Alexander S. & Bolle, Friedel, 2006. "Utility versus Income-Based Altruism," Discussion Papers 249, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
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