Lot-Sizing Problem With Uncertain Demand

Abstract

Uncertainty is one of the most major considerations when it comes to planning the manufacturing schedule. When it comes to lot-sizing considering the unpredictability of the situation has become more vital. In this piece of research, a lot-sizing with unpredictable demand is investigated. The lot-sizing of each product is what decides the batch size for that product. In order to cut down on overall system expenditures such as production and setup time, as well as inventory and backlog, a multi-stage stochastic programming model is developed. Our goal is to determine the optimal balance between the number of products produced and the total cost. A case study that was based on a clothing manufacturing company was carried out so that the idea could be shown and validated. In order to not only verify the suggested mathematical model but also quantitatively illustrate the quality of our technique, numerical findings based on a manufacturing business have been obtained. These results were used in the study. A test for the stability of the sample size as well as sensitivity assessments on a variety of factors has also been carried out.