IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v34y1988i11p1324-1332.html
   My bibliography  Save this article

A Sequential Lot Sizing Heuristic with Optimal Average Performance

Author

Listed:
  • Sven Axsäter

    (Luleå University of Technology, S-951 87 Luleå, Sweden)

Abstract

The classical dynamic lot size problem without backlogging is in practice usually solved with the aid of various heuristics. Most heuristics are sequential techniques, i.e. the future demand is considered period for period, and a decision whether to have a set-up or not in a certain period is taken without regarding the future demand. The average performance of a lot sizing heuristic will depend on the demand process. We assume that a typical demand will look like a sequence of independent identically distributed random numbers, and we derive a sequential lot sizing rule with optimal average performance under such circumstances. The optimal decision rule is compared to the Silver-Meal heuristic. We also analyze the situation when the decision rule is allowed to look ahead one period.

Suggested Citation

  • Sven Axsäter, 1988. "A Sequential Lot Sizing Heuristic with Optimal Average Performance," Management Science, INFORMS, vol. 34(11), pages 1324-1332, November.
    • Handle: RePEc:inm:ormnsc:v:34:y:1988:i:11:p:1324-1332
    DOI: 10.1287/mnsc.34.11.1324
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.34.11.1324
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.34.11.1324?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wilco Van den Heuvel & Albert P. M. Wagelmans, 2010. "Worst-Case Analysis for a General Class of Online Lot-Sizing Heuristics," Operations Research, INFORMS, vol. 58(1), pages 59-67, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:34:y:1988:i:11:p:1324-1332. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.