Combining Heuristics For The Economic Lot-Sizing Problem

This report shows a new heuristic for the economic lot-sizing problem (ELSP) made by combining two already existing heuristics, namely a modification of the well-known part-period algorithm (PPA) by DeMatteis (1968) and a fairly new heuristic by Van den Heuvel and Wagelmans (2009b). The performance of this new heuristic will be tested against a variety of heuristics of the same order and the optimal solution obtained from the Wagner-Whitin algorithm. This will be done in both a static schedule and a rolling horizon context.