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An economic lot-sizing technique, II: Mathematical analysis of the part-period algorithm

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1 Author(s)

The purpose of this paper is to analyze the solution of the Part Period Algorithm (PPA) to the economic lot-size problem with known future demands as presented by J. J. DeMatteis in Part I of this paper. Our model assumes that the manufacturing (or purchasing) cost function is a straight line with positive setup (or ordering) cost and non-negative slope; this cost function and the unit inventory holding cost are time invariant.

Note: The Institute of Electrical and Electronics Engineers, Incorporated is distributing this Article with permission of the International Business Machines Corporation (IBM) who is the exclusive owner. The recipient of this Article may not assign, sublicense, lease, rent or otherwise transfer, reproduce, prepare derivative works, publicly display or perform, or distribute the Article.  

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IBM Systems Journal  (Volume:7 ,  Issue: 1 )