Dynamic lotsizing with a finite production rate

Also, we have confirmed the additional restriction for feasibility in the finite production case (provided by Hill, 1997), namely the production rate restriction. Furthermore, in the NPV case, one further necessary condition for optimality, the distance restriction concerning the proximity between adjacent production intervals, has been derived. In an example this condition has shown to reduce the number of candidate solutions for optimality still further. An algorithm leading to the optimal solution is presented.