Algorithms and Heuristics for Variable-Yield Lot-Sizing.
Abstract
We consider the multiperiod lot-sizing problem in which the production yield (the proportion of usable goods) is variable according to a known probability distribution. A dynamic programming algorithm for an arbitrary sequence of demand requirements is presented. We review two economic order quantity (EOQ) models for the stationary demand continuous-time problem and derive an EOQ model when the production yield follows a binomial distribution and backlogging of demand is permitted. Heuristics based on the EOQ model are discussed, and a computational evaluation of these heuristics is presented. The heuristics consistently produced near optimal lot-sizing policies for problems with stationary and cyclic demands. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1983
- Accession Number
- ADA127559
Entities
People
- Harvey M. Wagner
- Joseph B. Mazzola
- William F. Mccoy
Organizations
- University of North Carolina at Chapel Hill