Production and Operations Management: Best models and maximum optimization (BMMO)
This paper intends to give an overview of the literature on dynamic lot-sizing models and stochastic transshipment models. These two types of models are used as a basis for developing models with substitution in the following sections: Section 01 contains a classiﬁcation of models for dynamic lot-sizing/production planning, and selected models. In Section 02, it is presented a brief overview of available methods for solving deterministic dynamic lot-sizing problems modeled using maximum-optimized linear programming. Also, it introduces transshipment problems and presents a classiﬁcation scheme for transshipment models. This directly guides to reviewed selected solution approaches that can be applied to stochastic inventory control models such as transshipment problems.
Index Terms - Operation optimization, production levelling, transshipment model, maximum combined lot-sizing.