Lot‐sizing Time‐varying Demands: A Spreadsheet Approach

Describes a spreadsheet approach for implementing Wagner‐Whitin (WW) and Silver‐Meal (SM) methods for lotsizing time‐varying demands. Suggests that this approach manages the computation and makes tedious and repetitive tasks more interesting; consequently, the student/user can concentrate on the concepts. Outlines the methods, which involve the computation of incremental costs (inventory carrying and replenishment costs) for several alternatives in each period. Presents a spreadsheet template to compute the incremental costs for possible alternatives which is created by using only a small number of spreadsheet formulae and a series of copy commands. The costs are displayed as a matrix. Describes a step‐by‐step procedure to determine the period and the quantity of replenishment.