Note—Performance Bounds for Lot Sizing Heuristics
Management Science · 1985 · Volume 31 · Issue 5
Abstract
This paper deals with the classical dynamic lot size problem without backlogging and capacity limitation. We derive worst case performance bounds for a class of lot sizing heuristics. When the considered methods are applied a decision whether to have a set-up or not in a certain period is taken without regarding the future demand. It is shown that 2 is a lower bound for the worst case performance ratio for such heuristics. The results illustrate circumstances under which the approximate techniques fail.
Keywords
inventory/production: deterministic models, inventory/production: planning horizon, heuristics
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