The critical cut-off value approach for dynamic lot sizing problems with time varying cost parameters

In a dynamic lot sizing problem with time varying cost parameters, a sequence of critical cut-off values is used for each ordering point to compare with the demands in order to determine the covering cycle. It is an extension of the eyeballing heuristic and can be done manually too. The heuristic has performed well in our empirical study. Other extensions of the existing heuristics for dynamic lot sizing problems with constant cost parameters are also considered. Similar experiments showed clearly that the critical cut-off value heuristic is the better one.