An efficient heuristic procedure for the single-item, discrete lot sizing problem

This study looks at the single-item discrete lot sizing problem with back orders. Most of the studies in the literature on lot sizing problems do not allow for backordering. This paper modifies some of the heuristic rules developed originally for the facility location problems and applies them to the lot sizing problem. The heuristic rules are tested and evaluated for their efficiency. The findings of this study illustrate that the heuristic rules provide solutions that are either optimal or very close to optimal.