Preliminary communication

A modified version of the part period lot-sizing heuristic

Singa Wang Chiu ; Department of Business Administration, Chaoyang University of Technology, Taichung, TAIWAN
Chia-Kuan Ting ; Department of Industrial Engineering and Management, Chaoyang University of Technology, Taichung, TAIWAN
Yuan-Shyi Peter Chiu ; Department of Industrial Engineering and Management, Chaoyang University of Technology, Taichung, TAIWAN

Abstract

This paper proposes a modified version of the part period lot-sizing heuristic for the case of deterministic time-varying demands. The Part Period Balancing heuristic (PPB) is to select the number of periods covered by the replenishment order such that the total holding costs are made as close as possible to the setup cost. This paper presents a modification of the PPB by adding a procedure to the end of the PPB to test whether the elimination of the last replenishment order by combining it with the preceding order is cost-beneficial. If the condition holds, then it amalgamates the last two replenishment lot sizes, and hence total inventory costs are reduced. Numerical examples are provided to demonstrate its practical usage and the proof of cost saving of the proposed mv-PPB heuristic is
given in Appendix.

Keywords

part period balancing (PPB), cost control, heuristic, lot-sizing

Hrčak ID:

295598

URI

https://hrcak.srce.hr/295598

Publication date:

15.12.2005.

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