An extension for dynamic lot-sizing heuristics

Abstract

This paper presents an efficient procedure to extend dynamic lot-sizing heuristics that has been overlooked by inventory management literature and practice. Its intention is to show that the extension improves the results of basic heuristics significantly. We first present a comprehensive description of the extension procedure and then test its performance in an extensive numerical study. Our analysis shows that the extension is an efficient tool to improve basic dynamic lot-sizing heuristics. The results of the paper may be used in inventory management to assist researchers in selecting dynamic lot-sizing heuristics and may be of help for practitioners as decision support.