Abstract
The problem considered is the determination of lot sizes for multiple products to be produced on a single production facility with limited capacity. An optimal solution to this lot-sizing problem within reasonable computer time is not available so far. However, various heuristic solution procedures have been proposed in the literature. In addition, so-called improvement steps can be used in order to improve the final solution obtained by the lot-sizing heuristic. In a simulation study, several well-known lot-sizing heuristics of the period-by-period type are compared and the effectiveness of improvement steps is investigated. Numerical results show that the lot-sizing heuristics considerably differ in their cost performance, especially when capacity constraints are tight and the average time between orders is high.
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