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Wagner – Whitin Algorithm

Material Management Class Note #1-B. Wagner – Whitin Algorithm. Prof. Yuan-Shyi Peter Chiu Feb. 2011. ◇. § M6: Wagner – Whitin Algorithm (page 4) Example. ~ A general model for Production Planning Terms: Periods: 1,2,3,….N  i : demand rate in period i

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Wagner – Whitin Algorithm

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  1. Material Management Class Note #1-B Wagner – Whitin Algorithm Prof. Yuan-Shyi Peter Chiu Feb. 2011

  2. ◇ § M6:Wagner – Whitin Algorithm (page 4) Example ~ A general model for Production Planning Terms: Periods: 1,2,3,….N i: demand rate in period i h : holding cost / item / period K : setup cost c : unit cost : cost of producing enough items for period i thru. j at beginning of period i

  3. ◇ § M6:Wagner – Whitin Algorithm (page 5) (B) Formula ...[Eq.6.1] …...[Eq.6.2] • Lowest cost from period i to N that will satisfies demand

  4. ◇ § M6:Wagner – Whitin Algorithm (page 6) [Eg.] Demand 1Q 2Q 3Q 4Q 3000 2000 3000 2500 λ1 λ2 λ3 λ4 X2 X3 X4 P1 P2 P3 P4

  5. ◇ § M6:Wagner – Whitin Algorithm (page 7) [Eg]solution:

  6. ◇ § M6:Wagner – Whitin Algorithm (page 8) [Eg]solution:

  7. C1=Min

  8. ◇ § M6:Wagner – Whitin Algorithm (page 10) [Eg]solution: [Answer] To produce enough items from 1st period to 2nd period, then To produce enough items from 3rd period to 4th period. In other words , production plan is: “ to produce 5000 items at the beginning of the first period, then to produce 5500 items at the beginning of the 3rd period ”. ~ The End ~

  9. ~ The End ~

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