An Improved WAGNER-WHITIN Algorithm

We present an improved implementation of the Wagner-Whitinalgorithm for economic lot-sizing problems based on the planninghorizontheorem and the Economic- Part-Period concept. Theproposed method of this paper reduces the burden of the computationssignificantly in two different cases. We first assume there is nobacklogging and inventory holding and set-up costs are fixed. Thesecond model of this paper considers WWA when backlogging,inventory holding and set-up costs cannot be fixed. The preliminaryresults also indicate that the execution time for the proposed method isapproximately linear in the number of periods in the planning-horizon.