The problem of interest is a one product, uncapacitated master production schedule (MPS) in which decisions are made under rolling planning horizons. Demand is stochastic and time varying, and effectiveness is measured by inventory holding, production setup, and backorder costs. Typically, in...

We present an algorithm for determining the optimal solution over the entire planning horizon for the dynamic lot-size model where demand is stochastic and non-stationary. The optimal solution to the deterministic problem is the well-known Wagner-Whitin algorithm. The present work contributes...