An optimal algorithm for the basic period approach to the economic lot scheduling problem

Abstract

This paper develops a global optimum solution to the Economic Lot Scheduling Problem (ELSP) using the restrictions of the basic period approach as originally formulated by Bomberger. The ELSP is a classic problem in production which involves scheduling multiple products on a single facility, with the restriction that no two products may be produced at the same time. Ideally, a manufacturer could generate a schedule which would minimize the sum of setup and holding costs, but the complexities involved have so far precluded the attainment of such an ideal. This article presents a real time solution method for practical sized problems using the basic period version of the ELSP. The authors believe this is the first global optimal algorithm for the basic period ELSP to be presented in the literature. It is anticipated that future research will extend the idea presented in this article to cover more general approaches to the ELSP.