Dynamic lot sizing techniques: Survey and comparison

Numerous heuristics have been proposed in the past two decades for the dynamic lot sizing problem. Their relative performance is explored in extensive numerical tests measuring expected costs, risks of higher than expected costs and computer time consumed. The results indicate that users of pertinent standard software systems could benefit substantially from an incorporation of more recently proposed methods, specifically Groff’s stop rule and a fathoming algorithm expanding it to a look-ahead heuristic.