Lot Sizing Problem

1) One replenishment at the start of month 1 to cover all the demand requirements
Month
Demand

1
100
50
0.12
800
1
700

2
75
50
0.12

3
50
50
0.12

4
100
50
0.12

5
50
50
0.12

6
40
50
0.12

7
80
50
0.12

8
80
50
0.12

9
0
50
0.12

10
50
50
0.12

11
75
50
0.12

12
100
50
0.12

625

575

475

425

385

305

225

225

175

100

2
75
50
0.12
75
1
0

3
50
50
0.12
50
1
0

4
100
50
0.12
100
1
0

5
50
50
0.12
50
1
0

6
40
50
0.12
40
1
0

7
80
50
0.12
80
1
0

8
80
50
0.12
80
1
0

9
0
50
0.12
0
0

10
50
50
0.12
50
1
0

11
75
50
0.12
75
1
0

12
100
50
0.12
100
1
0

8
80
50
0.12
205
1
125

9
0
50
0.12

10
50
50
0.12

11
75
50
0.12

125

75

12
100
50
0.12
100
1
0

2) Lot for Lot

Month
Demand

1
100
50
0.12
100
1
0

3) Fixed EOQ

Month
Demand

1
100
50
0.12
225
1
125

2
75
50
0.12

3
50
50
0.12

50

4
100
50
0.12
270
1
170

5
50
50
0.12

6
40
50
0.12

7
80
50
0.12

120

80

4) Fixed order period of 3 months

Month
Demand

1
100
50
0.12
225
1
125

2
75
50
0.12

3
50
50
0.12

50

4
100
50
0.12
190
1
90

5
50
50
0.12

6
40
50
0.12

40

7
80
50
0.12
160
1
80

8
80
50
0.12

9
0
50
0.12

10
50
50
0.12
225
1
175

11
75
50
0.12

12
100
50
0.12

100

5) Silver-Meal heuristic
Month

Demand
1
2
3
4
5
6
7
8
9
10
11
12

Month
Demand

Lot size
100
75
50
100
50
40
80
80
0
50
75
100

1
100
50
0.12
700
1
600

Holding cost

100
175
225
325
375
415
495
575
575
625
700
100

Ordering cost

0
9
21
57
81
105
162.6
229.8
229.8
283.8
373.8
505.8

Total cost
50
50
50
50
50
50
50
50
50
50
50
50

Cost per period

50
59
71
107
131
155
212.6
279.8
279.8
333.8
423.8
555.8

0.5
0.337142857
0.315555556
0.329230769
0.349333333
0.373493976
0.429494949
0.486608696
0.486608696
0.53408
0.605428571
5.558

2
75
50
0.12

3
50
50
0.12

4
100
50
0.12

5
50
50
0.12

6
40
50
0.12

7
80
50
0.12

8
80
50
0.12

9
0
50
0.12

10
50
50
0.12

11
75
50
0.12

525

475

375

325

285

205

125

125

75

12
100
50
0.12
100
1
0

6) Least unit cost

Month

Demand
1
2
3
4
5
6
7
8
9
10
11
12

Month
Demand

100
75
50
100
50
40
80
80
0
50
75
100

1
100
50
0.12
225
1
125

Lot size
Holding cost
Ordering cost
100
0
175
9
225
21
100
0
150
6
190
15.6
80
0
160
9.6
160
9.6
210
27.6
75
0
175
12

2
75
50
0.12

3
50
50
0.12

50

4
100
50
0.12
190
1
90

5
50
50
0.12

40

6
40
50
0.12
210
1
210

Total cost
50
50
50
50
50
50
50
50
50
50
50
50

Cost per period

50
59
71
50
56
65.6
50
59.6
59.6
77.6
50
62

50
29.5
23.66666667
50
28
21.86666667
50
29.8
19.86666667
19.4
50
31

7
80
50
0.12

8
80
50
0.12

9
0
50
0.12

10
50
50
0.12

130

50

50

11
75
50
0.12
175
1
100

12
100
50
0.12

7) Part period balancing

8) Month
1
2
3
4
5
6
7
8
9
10
11
12

Month
Demand

1
100
50
0.12
325
1
225

Demand
Lot size
Holding cost
Ordering cost
100
100
0
75
175
9
50
225
21
100
325
57
50
50
0
40
90
4.8
80
170
24
80
250
52.8
0
250
52.8
50
50
0
75
125
9
100
225
33

2
75
50
0.12

3
50
50
0.12

4
100
50
0.12

150

100

5
50
50
0.12
250
1
200

50
50
50
50
50
50
50
50
50
50
50
50

6
40
50
0.12

7
80
50
0.12

8
80
50
0.12

9
0
50
0.12

160

80

10
50
50
0.12
225
1
175

11
75
50
0.12

12
100
50
0.12

100