Economic Lot Size Models with Constant Demands

  • Julien Bramel
  • David Simchi-Levi
Part of the Springer Series in Operations Research book series (ORFE)


Production planning is also an area where difficult combinatorial problems appear in day to day logistics operations. In this chapter, we analyze problems related to lot sizing when demands are constant and known in advance. Lot sizing in this deterministic setting is essentially the problem of balancing the fixed costs of ordering with the costs of holding inventory. In this chapter, we look at several different models of deterministic lot sizing. First we consider the most basic single-item model, the Economic Lot Size Model. Then we look at coordinating the ordering of several items with a warehouse of limited capacity. Finally, we look at a one-warehouse multiretailer system.


Inventory Level Order Quantity Inventory Policy Infinite Horizon Average Inventory 


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Copyright information

© Springer-Verlag New York, Inc. 1997

Authors and Affiliations

  • Julien Bramel
    • 1
  • David Simchi-Levi
    • 2
  1. 1.Management Science Division Graduate School of BusinessColumbia UniversityNew YorkUSA
  2. 2.Department of Industrial Engineering and Management SciencesNorthwestern UniversityEvanstonUSA

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