(Lot sizing) The demand for a product is known to be dt units in periods t...

(Lot sizing) The demand for a product is known to be dt units in periods t = 1,...,n. If we produce the product in period t, we incur a machine setup cost ft which does not depend on the number of units produced plus a production cost pt per unit produced. We may produce any number of units in any period. Any inventory carried over from period t to period t + 1 incurs an inventory cost it per unit carried over. Initial inventory is s0. Formulate a mixed integer linear program in order to meet the demand over the n periods while minimizing overall costs.

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Answer :-

Lot sizing involves determining the amount of an item that needs to be manufactured. There are two basic approaches to lot sizing. Static lot sizing involves manufacturing the same quantity of items regularly, and usually results in a large safety stock of inventory.

Colby Messinger answered 4 months ago

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