DYNAMIC LOT SIZING WITH BACKLOGGING

In this paper an efficient algorithm for the production of a single item having a deterministic, lime-varying demand pattern is proposed. Production lot sizes, which minimize the total costs of set-up, production and carrying are to he determined. A main theorem concerning properties of the optimal solution is exploited in developing a new algorithm. In addition, other properties are utilized to reduce the size of computational efforts. Results of extensive comparison with dynamic programming routines are presented and discussed.