A data-dependent efficient implementation of the Wagner-Whitin algorithm for lot-sizing

Abstract The Wagner-Whitin algorithm is a well-known optimal procedure for determining production quantities X t , over the planning horizon ( N periods) when demands D t , setup cost S t , production costs C t and holding costs H t are known. Evans [1] presented a computer code and showed that W-W algorithm takes only a few seconds on the computer even for a large problem. We modify Evans code by incorporating Wagner's setup cost horizon theorem and show empirically that the new code is faster by a factor of N/4 in the best case, but is slower only by 1–2% in the worst case.