A popular heuristic lot-sizing method is known as period order quantity (POQ). The method requires determining the

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A popular heuristic lot-sizing method is known as period order quantity (POQ). The method requires determining the average number of periods spanned by the EOQ and choosing the lot size to equal this fixed period supply. Let  be the total demand over an N-period planning horizon [  ( rin)] and assume that EOQ is computed as described in Section 8.2. Then P  EOQ rounded to the nearest integer. For the example in Section 8.2, P  13943.9  3.17, which is rounded to

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Production And Operations Analysis

ISBN: 9781478623069

7th Edition

Authors: Steven Nahmias, Tava Lennon Olsen

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