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New heuristics for lot sizing problems with variable unit costs
Conference proceeding

New heuristics for lot sizing problems with variable unit costs

Tianbing Qian and Philip C. Jones
Proceedings - Annual Meeting of the Decision Sciences Institute, Vol.3, pp.1549-1551
1996

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Abstract

We present lot-sizing heuristics that are both efficient and stable for the dynamic lot-sizing problem (DLSP) with constant or variable unit costs, including setup, inventory holding and production costs. These heuristics are myopic variants of the forward Wagner-Whitin algorithm with rolling horizons. Large scale computational experiments show that these heuristics considerably outperform other well known stable heuristics and produce close-to-optimal solutions for DLSP with general unit costs.

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