Eyeballing heuristics for dynamic lot size problems (Q1118517)

We propose a simple heuristic algorithm for solving the classical discrete dynamic lot size problem without backlogging over a finite planning horizon. It is based on the basic ideas of acceptable inventory sizes to be held over a number of periods. The heuristic can be implemented by only comparing pairs of numbers without any tedious computations. The cost comparisons have shown that its efficiency is very encouraging.