Forecast Horizons in the Discounted Dynamic Lot Size Model

Chand, Suresh; Sethi, Suresh; Sorger, Gerhard

doi:10.2139/ssrn.1127886

Cited by 6 publications

(11 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…. ¼ CðnÞ 1 À a n ¼ K þ bDn þ P nÀ1 i¼1 a i hDðn À 1Þ 1 À a n : Chand et al (1992) established the following important property of the function FÀ DðnÞ.…”

Section: The Discounted Cost Problemmentioning

confidence: 96%

“…Lemma 2 Ð below states three useful properties of the optimal cycle lengths for a finite horizon problem. A formal proof of the lemma is given in Chand et al (1992) and we skip it here.…”

Section: The Discounted Cost Problemmentioning

confidence: 99%

“…The second part shows that we can restrict our search to a set of cycle lengths that satisfy certain monotonicity conditions. The third part specifies solution for a special case when T is an integer multiple of m. Chand et al (1992) discuss an interesting interpretation of the cost function C(n) that leads to a proof for Part 2 of the above lemma. If X(n) is the equivalent per period cost of an n-period cycle, then CðnÞ ¼ XðnÞ þ aXðnÞ þ a 2 XðnÞ þ .…”

Section: The Discounted Cost Problemmentioning

confidence: 99%

See 2 more Smart Citations

Handbook of EOQ Inventory Problems

Choi¹

2014

International Series in Operations Research &Amp; Management Science

View full text Add to dashboard Cite

“…. ¼ CðnÞ 1 À a n ¼ K þ bDn þ P nÀ1 i¼1 a i hDðn À 1Þ 1 À a n : Chand et al (1992) established the following important property of the function FÀ DðnÞ.…”

Section: The Discounted Cost Problemmentioning

confidence: 96%

“…Lemma 2 Ð below states three useful properties of the optimal cycle lengths for a finite horizon problem. A formal proof of the lemma is given in Chand et al (1992) and we skip it here.…”

Section: The Discounted Cost Problemmentioning

confidence: 99%

Section: The Discounted Cost Problemmentioning

confidence: 99%

See 1 more Smart Citation

Handbook of EOQ Inventory Problems

Choi¹

2014

International Series in Operations Research &Amp; Management Science

View full text Add to dashboard Cite

“…(), Chand et al. (), and Federgruen and Tzur (). In Stadtler (), the looking beyond the planning horizon approach for the LSP is presented to counteract the truncated horizon effect .…”

Section: Literature Reviewmentioning

confidence: 99%

“…This effect appears in deterministic and stochastic settings. First proposals to reduce the truncated horizon effect have been made by Carlson et al (1982), Chand et al (1992), andFedergruen andTzur (1994). In Stadtler (2000), the looking beyond the planning horizon approach for the LSP is presented to counteract the truncated horizon effect.…”

Section: Literature Reviewmentioning

confidence: 99%

Stabilized‐Cycle Strategy for Capacitated Lot Sizing with Multiple Products: Fill‐Rate Constraints in Rolling Schedules

Meistering

Stadtler

2017

Production and Operations Management

View full text Add to dashboard Cite

In practice, deterministic, multi‐period lot‐sizing models are implemented in rolling schedules since this allows the revision of decisions beyond the frozen horizon. Thus, rolling schedules are able to take realizations and updated forecasts of uncertain data (e.g., customer demands) into account. Furthermore, it is common to hold safety stocks to ensure given service levels (e.g., fill rate). As we will show, this approach, implemented in rolling schedules, often results in increased setup and holding costs while (over‐)accomplishing given fill rates. A well‐known alternative to deterministic planning models are stochastic, static, multi‐period planning models used in the static uncertainty strategy, which results in stable plans. However, these models have a lack of flexibility to react to the realization of uncertain data. As a result, actual costs may differ widely from planned costs, and downside deviations of actual fill rates from those given are very high. We propose a new strategy, namely the stabilized cycle. This combines and expands upon ideas from the literature for minimizing setup and holding costs in rolling schedules, while controlling actual product‐specific fill rates for a finite reporting period. A computational study with a multi‐item capacitated medium‐term production planning model has been executed in rolling schedules. On the one hand, it demonstrates that the stabilized‐cycle strategy yields a good compromise between costs and downside deviations. Furthermore, the stabilized‐cycle strategy weakly dominates the order‐based strategy for both constant and seasonal demands.

show abstract

Infinite Horizon Problems

Ghate

2011

Wiley Encyclopedia of Operations Research and Management Science

View full text Add to dashboard Cite

The systems under consideration in (discrete‐time) sequential decision problems in operations research and the management sciences often do not have a predetermined time of extinction. Incorporating an arbitrary finite horizon can therefore introduce end‐of‐study distortions in early decisions. Such problems are therefore typically modeled over an unbounded horizon. A majority of the work in this area focuses on stationary models, which assume that the problem data do not change over time. There is also a considerable body of research on nonstationary problems. We briefly review some of the key concepts in nonstationary infinite horizon sequential decision making problems.

show abstract

Forecast Horizons in the Discounted Dynamic Lot Size Model

Cited by 6 publications

References 0 publications

Handbook of EOQ Inventory Problems

Handbook of EOQ Inventory Problems

Stabilized‐Cycle Strategy for Capacitated Lot Sizing with Multiple Products: Fill‐Rate Constraints in Rolling Schedules

Infinite Horizon Problems

Contact Info

Product

Resources

About