Dynamic Lot-Sizing with Plan Setup Cost in a Rolling Horizon Environment

Researches of dynamic lot-sizing problem in a rolling horizon environment have not considered plan setup cost occurring when a plan is issued. This research deals with dynamic single level lot-sizing problem with plan setup cost and proposes a simple heuristic for restricted forecast of demands beyond the planning horizon. Moreover, we provide test results to compare proposed heuristic with existing lot-sizing algorithms.

1. INTRODUCTION

2. DYNAMIC SINGLE-LEVEL LOT-SIZINGPROBLEM WITH PLAN SETUP COST

3. L-OPTIMAL HEURISTIC (LOP)

4. TEST RESULTS

5. CONCLUSION

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