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Single-Echelon Systems: Deterministic Lot Sizing

  • Sven AxsäterEmail author
Chapter
  • 4.2k Downloads
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 225)

Abstract

When using an (R, Q) policy we need to determine the two parameters R and Q. We shall first consider the determination of the batch quantity Q. (When using an (s, S) policy, Q essentially corresponds to S—s.) We shall in this chapter assume that the future demand is deterministic and given. If the lead-time is constant, it does then not affect the problem and we can therefore just as well assume that the lead-time L = 0. The only difference in case of a positive lead-time is that we need to order L time units earlier. See also the discussion in Sect. 4.1.3. (If the demand is stochastic, we cannot disregard the lead-time.)

Keywords

Inventory Level Order Quantity Penalty Cost Finite Horizon Optimal Order Quantity 
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Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  1. 1.Department of Industrial Management & LogisticsLund UniversityLundSweden

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