Abstract
In this study, we develop and analyse an optimal solution procedure for the inventory lot-sizing problem with a general class of time-varying demand functions. The objective of the procedure is to determine the optimal replenishment schedule over a finite planning horizon during which shortages are allowed and are completely backordered. We show that the procedure yields a unique optimal replenishment schedule for both increasing and decreasing demand patterns. We also discuss two particular cases of linear and non-linear demand trend models, and we illustrate the optimal solution procedure with four numerical examples.
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Hariga, M. The Inventory Lot-Sizing Problem with Continuous Time-Varying Demand and Shortages. J Oper Res Soc 45, 827–837 (1994). https://doi.org/10.1057/jors.1994.126
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DOI: https://doi.org/10.1057/jors.1994.126