Classical lot sizing algorithms treat each product independently and assume that demands are static, while, in reality production for products is subject to capacity limit. There are few lot sizing algorithms which consider capacity constraints in a multi-product system.
A dynamic lot sizing algorithm presented here is an extended version of Eisenhut algorithm which considers the production of all products with capacity constraints simultaneously and can handle demand variation in time.
In this work, job shop type of production system is investigated with the proposed algorithm, here a single planned order is determined for each product.
A case study is presented to illustrate the applicability of the proposed lot sizing algorithm.