Note: Dynamic lot sizing for a finite rate input process

Abstract

The basic single-product dynamic lot-sizing problem involves determining the optimal batch production schedule to meet a deterministic, discrete-in-time, varying demand pattern subject to linear setup and stockholding costs. The most widely known procedure for deriving the optimal solution is the Wagner-Whitin algorithm, although many other approaches have subsequently been developed for tackling the same problem. The objective of this note is to show how these procedures can readily be adapted when the input is a finite rate production process.