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Optimization of Batch Ordering under Deterministic Variable Demand


  • Salah E. Elmaghraby

    (North Carolina State University)

  • Vishwas Y. Bawle

    (American Natural Gas Service Company, Detroit, Michigan)


We consider the problem of the optimal ordering schedule to satisfy a given demand pattern over a finite planning horizon when ordering must be in batches of size Q > 1, with and without "setup" cost. A dynamic programming model is constructed. The number of stages are minimized through the characterization of a "complete" set of periods in which ordering must take place and through consideration of the role of initial inventory. The state space and the decision space at each stage are also minimized through considerations of dominance, bounding and feasibility relative to established properties of the optimal schedule. All this results in a most computational efficient algorithm.

Suggested Citation

  • Salah E. Elmaghraby & Vishwas Y. Bawle, 1972. "Optimization of Batch Ordering under Deterministic Variable Demand," Management Science, INFORMS, vol. 18(9), pages 508-517, May.
  • Handle: RePEc:inm:ormnsc:v:18:y:1972:i:9:p:508-517

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    Cited by:

    1. Jans, R.F. & Degraeve, Z., 2005. "Modeling Industrial Lot Sizing Problems: A Review," ERIM Report Series Research in Management ERS-2005-049-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    2. Chung-Lun Li & Qingying Li, 2016. "Polynomial-Time Solvability of Dynamic Lot Size Problems," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 33(03), pages 1-20, June.

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