Traditionally, mathematical optimization methods have been applied in manufacturing industries where production scheduling is one of the most important problems and is being actively researched. Extant studies assume that processing times are known or follow a simple distribution. However, the...

This paper constructs a unified framework to survey most of the work done to date on decision and forecast horizons in a stochastic environment. The paper is divided into sections by type of model. For each model type, the issues of existence of these horizons and of derivation of sufficient...

This paper is concerned with a periodic review inventory system with fast and slow delivery modes, fixed ordering cost, and regular demand forecast updates. At the beginning of each period, on-hand inventory and demand information are updated. At the same time, decisions on how much to order...

We are concerned with a discrete-time undiscounted dynamic lot size model in which demand and the production setup cost are constant for an initial few periods and the holding cost of inventory is an arbitrary nondecreasing function assumed to be stationary (i.e., explicitly independent of time)...

Focuses on a study which developed a framework for forecast and decision horizons. Definition of finite and infinite horizon stochastic optimization problems for a given forecast; Description of the general framework; Conditions for the existence of a solution horizon; Development of sufficient...

We study a two-stage purchase contract with a demand forecast update. The purchase contract provides the buyer an opportunity to adjust an initial commitment based on an updated demand forecast obtained at a later stage. An adjustment, if any, incurs a fixed as well as a variable cost. Using a...

We present structural and computational investigations of a new class of weak forecast horizons - minimal forecast horizons under the assumption that future demands are integer multiples of a given positive real number - for a specific class of dynamic lot-size (DLS) problems. Apart from being...

In this paper, we develop a rigorous new framework for the concepts of forecast and decision horizons. These concepts are conditional in nature and, in turn, enable us to unify the existing concepts of “strong” and “weak” horizons. Moreover, we are able to precisely state the question of...