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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.

Suggested Citation

  • Okhrin, Irena & Richter, Knut, 2010. "The linear dynamic lot size problem with minimum order quantities," Discussion Papers 283, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    • Handle: RePEc:zbw:euvwdp:283
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    References listed on IDEAS

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    Keywords

    lot sizing problem; minimum order quantity; dynamic programming;
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