An optimal lot-sizing model for multi-stage series/assembly systems

Abstract

Multi-stage optimal lot-sizing problems are extremely intractable and are classified as the hard-problem in the worst case. Research to date on obtaining optimal lot-sizing solutions has been limited to the simple and small problems. In this paper, the case of one finished product is considered. Applying the concepts of echelon stock and topology structure, the optimal solutions of multi-stage series/assembly systems can be obtained by a dynamic programming algorithm which is based upon a pointer method. This algorithm can be applied to both uncapacitated and capacitated series and assembly systems. © 1988.