Article ID Journal Published Year Pages File Type
4958948 Computers & Operations Research 2018 4 Pages PDF
Abstract

•The stochastic dynamic lot sizing problem with multiple items and limited capacity is studied.•The work corrects the erroneous derivation found in Tempelmeier and Hilger (2015).•A linear optimization formulation is derived using a piece-wise linear approximation.

Tempelmeier and Hilger (2015) study the stochastic dynamic lot sizing problem with multiple items and limited capacity. They propose a linear optimization formulation for the problem based on a piece-wise linear approximation of the non-linear functions for the expected backorders and the expected inventory on hand. Building on the work of Tempelmeier and Hilger (2015), we correct an erroneous derivation of the linear optimization problem and propose an improved model.

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Physical Sciences and Engineering Computer Science Computer Science (General)
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