Multi-stage lot-sizing under demand uncertainty and rolling schedule environment

Abstract

In this paper, the influence of demand uncertainty and the effect of rolling schedule on the five well-known lot-sizing algorithms are examined. Demand uncertainty is present in the form of forecast errors. A set of modified costs that attempt to account for the interdependencies among stages is used. In order to avoid any contamination of the results due to different service levels, no shortages are allowed. The results of this research show that the effect of uncertainty in demand does not largely upset the rank of the lot-sizing performance in the multi-stage settings and the cost-modification does slightly affect the performance of each lot-sizing rule.