Applied Mathematics
Volume 5, Issue 2 (January 2014)
ISSN Print: 2152-7385 ISSN Online: 2152-7393
Google-based Impact Factor: 0.58 Citations
An Algorithm for Infinite Horizon Lot Sizing with Deterministic Demand ()
Affiliation(s)
ABSTRACT
We analyze an infinite horizon discrete time inventory model with deterministic but non-stationary demand for a single product at a single stage. There is a finite cycle of vectors of characteristics of the environment (demand, fixed ordering cost, variable procurement cost, holding cost) which is repeated after a finite number of periods. Future cost is discounted. In general, minimization of the sum of discounted total cost over the cycle does not give the minimum of the sum of discounted total cost over the infinite horizon. We construct an algorithm for computing of an optimal strategy over the infinite horizon. It is based on a forward in time dynamic programming recursion.
KEYWORDS
Share and Cite:
Cited by
Copyright © 2024 by authors and Scientific Research Publishing Inc.
This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.