An Improved WAGNER-WHITIN Algorithm

Abstract

We present an improved implementation of the Wagner-Whitin algorithm for economic lot-sizing problems based on the planning-horizon theorem and the Economic- Part-Period concept. The proposed method of this paper reduces the burden of the computations significantly in two different cases. We first assume there is no backlogging and inventory holding and set-up costs are fixed. The second model of this paper considers WWA when backlogging, inventory holding and set-up costs cannot be fixed. The preliminary results also indicate that the execution time for the proposed method is approximately linear in the number of periods in the planning-horizon .

Keywords

• algorithm; economic lot-sizing; Wagner-Whitin algorithm