Efficient approximate algorithms for a class of dynamic lot size problems under product substitution

Our investigation into the production substitution between products is motivated by a significant issue faced firms in practice: effective balance of setup and cost. Given that can adjust an operation policy to lower costs or both, manager should also know how best make adjustment. Thus, this study, we consider class dynamic lot sizing problems with one-way two-way product modes under durable perishable products. According some structural properties optimal solution, devise forward programming (DP) algorithm work out problem two polynomial time. Then, develop efficient approximate DP solve multiple Finally, on comprehensive test bed, gain useful insights impact total costs. We tested effectiveness algorithm.