An extended economic production quantity (EPQ) model under stochastic demand is investigated in this paper, where a fixed lot sizing policy is implemented to reduce the complexity of production planning and inventory control, and outsourcing with a secondary facility is used to supplement the lot sizing policy and to cope with the random demand. The considered cost includes: setup cost for the ...

We show for the general dynamic lot sizing model how minimal forecast horizons may be detected by a slight adaptation of an earlier 0(n log n) or 0(n) forward solution method for the model. A detailed numerical study indicates that minimal forecast horizons tend to be small, that is, include a small number of orders. We describe a new planning approach to ensure stability of the lot sizing deci...

The paper deals with a stochastic multi-product sequencing and lot-sizing problem for a line that produces items in lots. Two types of uncertainties are considered: random lead time induced by machine breakdowns and random yield to take into account part rejects. In addition, sequence dependent setup times are also included. This study focuses on maximizing the probability of producing a requir...

The paper deals with a stochastic multi-product sequencing and lot-sizing problem for a line that produces items in lots. Two types of uncertainties are considered: random lead time induced by machine breakdowns and random yield to take into account part rejects. In addition, sequence dependent setup times are also included. This study focuses on maximizing the probability of producing a requir...