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.

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