Sensitivity Analysis for Economic Lot Size Problem

Authors

Feng Yi, School of Mechanical and Production Engineering, Nanyang Technological University, SingaporeFollow
Arun Kumar, School of Mechanical and Production Engineering, Nanyang Technological University, SingaporeFollow
Linet Ozdamar, School of Mechanical and Production Engineering, Nanyang Technological University, SingaporeFollow

Document Type

Article

Abstract

Many problems in production planning and supply chain optimization can be modeled as Economic Lot Size problem (ELS). This paper first demonstrates forward and backward algorithms for the economic lot size problem with backlogging, and then applies the two algorithms to analyze the sensitivities of setup cost and demand. The result for setup cost sensitivity is the same as the one described in [8] for economic lot size problem without backlogging. These analyses are especially useful for online or real-time applications which are common in current E_commerce.

Recommended Citation

Yi, Feng; Kumar, Arun; and Ozdamar, Linet, "Sensitivity Analysis for Economic Lot Size Problem" (2003). ICEB 2003 Proceedings (Singapore). 155.
https://aisel.aisnet.org/iceb2003/155