ABC β–a heuristic for dynamic capacitated lot sizing with random demand under a fill rate constraint

Abstract

This paper deals with the dynamic multi-item capacitated lot-sizing problem (CLSP) with random demand over a finite discrete time horizon. Unfilled demands are backordered. It is assumed that a fill rate constraint is in effect. We propose a heuristic solution procedure called ABC β that extends the A/B/C heuristic introduced by Maes and Van Wassenhove for the deterministic CLSP to the case of random demands.