A Fast Heuristic Algorithm for Dynamic Lot Sizing Problems

with Lifecycle Demand Patterns

IM 05

Abstract:

We address the Wagner-Whitin model in the presence of a typical product lifecycle demand pattern, composed of three phases: growth, maturity and decline.

Expressing lifecycle demand as a trapezoid, we improve the well-known Part-Period-Balancing method in solution quality.

Keywords:

Part-period-balancing (PPB), life-cycle demand, dynamic lot-sizing, heuristic.