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Lot Size Inventory Model
Lot-size ModelAn inventory model:– t=1,2,…,T period– dt is known at the beginning of period 1.– c(x)=K+cx: the cost to produce x units, c is the variable perunitcost of production, K-setup cost.– h-per unit cost of inventory every period.– Objective: Minimum cost– ct: limitation for the inventory of period t– r t : limit for the production of period t .May 20, 2011
Page 1 and 2: Lecture 22. Dynamic Programming (2)
Page 3 and 4: An Inventory ExampleA company know
Page 5 and 6: An Inventory Instance (cont’d)Dyn
Page 7 and 8: An Inventory InstanceLetft(i) : the
Page 9 and 10: t=4During month 4, the firm will pr
Page 11 and 12: An Inventory InstanceRecursion form
Page 13 and 14: t=30000i x (1/2)(i+x-2)+c(x) f 4(i+
Page 15 and 16: t=2i x (1/2)(i+x-3)+c(x) f 3(i+x-3)
Page 17 and 18: t=1i x (1/2)(i+x-1)+c(x) f 3(i+x-1)
Page 19 and 20: An Inventory Problem (Cont’d)3. E
Page 21 and 22: General Resource Allocation Problem
Page 23: Dynamic Programming ProcedureDefine
Page 27 and 28: Wagner-Whitin lemmaLemma1 : Given a
Page 29 and 30: Wagner-Whitin AlgorithmRecursive fo
Page 31 and 32: The silver-meal HeuristicIn extensi
Page 33: The End

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