Dynamic Lot-Sizing When Demand Timing Is Uncertain
Michael C. Burstein, Christopher H. Nevison, Robert C. Carlson
Operations Research · 1984 · Volume 32 · Issue 2
Abstract
We characterize optimal solutions for the dynamic lot-sizing problem when demand quantities are known, but their timing is uncertain. The characterization states that for some possible history of demands following a period of production, there is a period with zero inventory before another period with production. Using this characterization, we outline a dynamic program for the solution of these problems. Some results from sample problems illustrate the variety of optimal solutions that can occur.
Keywords
112 dynamic programming applications, 362 stochastic models for inventory/production, 655 stochastic programming
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