The Application of Marginal Analysis to the Economic Lot Scheduling Problem

Abstract Application of marginal analysis to the Economic Lot Scheduling Problem reduces the solution search to a simple systematic calculation and feasibility check. Compared with mathematical programming methods and heuristic approaches advocated previously, marginal analysis results in lower optimum cost solution with shorter optimum basic period lengths. For comparative purposes, data are included which allow evaluation of marginal analysis results with dynamic programming results of previous researchers.