Tempelmeier and Hilger (2015) study the stochastic dynamic lot sizing problem with multiple items and limited capacity. They propose a linear optimization formulation for the problem based on a piece-wise linear approximation of the non-linear functions for the expected backorders and the expected inventory on hand. Building on the work of Tempelmeier and Hilger (2015), we correct an erroneous derivation of the linear optimization problem and propose an improved model.
|Number of pages||4|
|Journal||Computers & Operations Research and their application to problems of world concern: An international journal|
|Publication status||Published - 1 Jan 2018|
- Dynamic demand
- Lot sizing
- Random demand