Bounds for production lot sizing with machine breakdowns

H. Groenevelt, L. Pintelon, and A. Seidmann (Management Science 38, 104–123, 1992) present two novel extensions to the EMQ model. These extensions are aimed at incorporating stochastic machine breakdowns and deal with analysing the optimal lot size and the associated reorder policy. The purpose of this paper is to give bounds to optimal lot sizes for the above two extensions. With these bounds, a simple algorithm to locate the optimal lot sizes will be developed.