The stochastic economic lot scheduling problem: A survey

We consider the production of multiple standardized products on a single machine with limited capacity and set-up times under random demands and random production times, i.e., the so-called stochastic economic lot scheduling problem (SELSP). The main task for the production manager in this setting is the construction of a production plan for the machine that minimizes the total costs, i.e., the sum of holding, backlogging and set-up costs. Based on the critical elements of such a production plan, we give a classification and extensive overview of the research on the SELSP together with an indication of open research areas.