We study the impact of positive lead times on the multi-level lot-sizing problem in a rolling schedule environment. We show how stockout situations may arise even in a context of deterministic demand. We therefore develop a procedure to avoid such stockouts and we compare its performance through a simulation study to a safety stock strategy. Simulation results show the superiority of the proposed procedure.
|Journal||European Journal of Operational Research|
|Publication status||Published - 2005|