Dynamic Lot Size Creation Optimum Lot-Sizing Procedures

Starting from the shortage date, successive requirements are grouped together to form lots until additional storage costs are greater than lot size independent costs.

The following figures are used in the example:

Price: $20

Lot size independent rcosts: $100

Storage costs percentage: 10%

In the example of dynamic lot size creation above, the optimum lot size is 3000 pieces, because an additional requirement of 1000 pieces for the 7/27 would mean that the lot size independent costs would be exceeded.