Multiple Finite Production Rate Dynamic Lot Size Inventory Models

Abstract

This paper investigates the dynamic inventory model for the case when production in a period is restricted to a finite set of specified values. The model allows the production rate to be any value in the set {0, P, 2P, ', mP}, where m is a nonnegative integer. It is assumed that the setup cost is paid only once for a production block and the holding cost is monotonically or linearly increasing. Efficient planning horizon procedures have been developed for this model.