An Evaluation of Lot-sizing Rules under the Uncretainty of Demand and Lead Time

This paper examines the influence of the uncertainty in demand and lead time on the relative performances of ten well-known single stage lot-sizing rules in a rolling schedule environment. Two other factors, coefficient of variation and time between orders, which may affect the performances of the rules are also considered. To compare the rules under an identical condition, 100% service level is set by introducing safety stocks. The effects of various factor levels are checked statistically by the pairwise t-test and the results show that the uncertainty of the environment has a strong influence on the performance of the rules.