Bookbinder, James H.; Tan, Jin-Yan - In: Management Science 34 (1988) 9, pp. 1096-1108
We formulate a stochastic-demand version of the single-stage lot-sizing problem with time-varying demand, incorporating a service-level constraint on the probability of a stockout. Three strategies are studied. The "static uncertainty" strategy, in which lot-sizing decisions for every period...