Optimal Lot Sizing in Acyclic Multiperiod Production Systems

Abstract

This paper addresses the problem of lot sizing within an acyclic hierarchical multiperiod production system. Cost conditions are established for the existence of optimal schedules satisfying the Wagner-Whit in property and a generalized nested schedules property. The method of proof is constructive and based on a network model. Imbedded in the proof are algorithms for adjusting any solution so that it satisfies the properties; thus the algorithms can be used to obtain a locally optimum solution from any trial schedule.