This paper analyzes the tradeoff between (demand) substitution costs and (production) changeover costs in a discrete-time production-inventory setting using a two-product dynamic lot-sizing model with changeover, inventory carrying, and substitution costs. We first show that the problem is...

This paper presents a generalized model to investigate forecast horizons for a twoproduct dynamic lot-sizing model under production changeover and one-way demand substitution. Changeover costs emerge when production switches from one product to another. A high-grade product can be used to...