lot-sizing-problems

What problem does it solve?

This Skill helps businesses determine the most cost-effective quantities to produce or order over multiple periods, minimizing costs associated with setup, holding, and potential shortages.

Core Features & Use Cases

• Multi-Period Planning: Solves complex inventory planning problems across various time horizons.
• Cost Optimization: Balances setup costs against holding costs to find the optimal order/production frequency and quantity.
• Heuristics & Optimal Algorithms: Implements practical heuristics like Silver-Meal and Least Unit Cost, as well as the optimal Wagner-Whitin algorithm.
• Capacitated Lot-Sizing: Addresses scenarios with production capacity constraints using Mixed-Integer Programming.
• Use Case: A manufacturing company needs to decide how much of a product to manufacture each month for the next year, considering fixed setup costs for each production run and costs for storing unsold inventory. This Skill can provide the optimal production plan.

Quick Start

Use the lot-sizing-problems skill to find the optimal production plan for a 12-period horizon with demands [50, 60, 40, 80, 100, 90, 70, 60, 50, 80, 90, 100], a setup cost of $200, and a holding cost of $2 per unit per period.