| Article ID: | iaor19981622 |
| Country: | United Kingdom |
| Volume: | 24 |
| Issue: | 10 |
| Start Page Number: | 969 |
| End Page Number: | 979 |
| Publication Date: | Oct 1997 |
| Journal: | Computers and Operations Research |
| Authors: | Chan Gin Hor, Chiu Kim Suan |
| Keywords: | heuristics |
In a multi-product dynamic lot sizing problem, besides a separate minor setup cost for each product produced, a major setup cost is incurred when at least one product is produced in a period. The objective is to determine the product lot sizes, over a finite planning horizon, that will minimize the total relevant cost. A simple extension of the one-way-eyeballing-heuristic (OWEH) to a multi-product algorithm is given. Computational experience on realistically sized problems (30 products, 50 time periods) shows inefficiency is about 10% of the optimum.