Economic lot scheduling heuristic for random demands

Abstract

An extension to the economic lot scheduling problem is given for a single-machine, multi-product line under random demands. The goal is to find the length of production cycles that minimizes the sum of setup and inventory holding costs per unit of time and satisfies the demand for each product at the required service level. First, the single-product finite replenishment inventory model is extended to the case of random demand. Then, a heuristic procedure uses this extension to determine the production cycles for the multi-product case. Computational results and comparisons with other models are reviewed.