In addition, discrepancies between planned and realized performance are considerably smaller in our model, despite the extremely simple approximation approach used.
These findings suggest that even with the very simple approximate solution procedure we use, the explicit consideration of congestion in lot sizing problems can be beneficial.
The next section presents a brief review of previous related work.
Section 3 introduces the functions used to represent the nonlinear relation between queue size and lead times of products.
Section 4 incorporates the functions developed in Section 3 into a multi-product dynamic lot sizing model.
Section 5 introduces the conventional lot sizing model without congestion that is used as a benchmark in our experiments.
Section 6 presents the computational experiments comparing the performance of the models.
We conclude the paper with a summary of the main conclusions and highlight some possible directions for future work.