A Dynamic Programming Approach to a Lot Size Scheduling Problem

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Abstract
The problem considered is that of scheduling the production of several different items over the same facility on a repetitive basis. The facility is such that only one item can be produced at a time; there is a setup cost and a setup time associated with producing each item; the demand rate for each item is known and constant over an infinite planning horizon, and all demand must be met. A dynamic programming solution is developed. This solution is applied to a sample problem, and the results are compared with pertinent bounds.

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