Postoptimal analysis of a dynamic lot-size Problem with time-varying capacities

There are a variety of dynamic lot-sizing techniques. Among them, Baker et al developed a branchand-bound algorithm, so called, “tree search procedure”, for a dynamic lot-size problem with timevarying capacities. In this paper, a method to do sensitivity and parametric analysis upon the problem of Baker et al, is presented which is developed by extending the tree search procedure. In particular, procedures are developed for determining ranges on problem parameters for which an optimal solution remains optimal and for exploring new optimal with changes in problem parameters. Keywords:Optimization, Postoptimal analysis.