Dynamic lot-sizing-based Working Capital Requirement minimization model with infinite capacity

Tactical planning consists of developing production plans to fulfill client demands with a minimal logistic cost. However, plans generated by classical models for tactical planning do not consider a minimum financial need in terms of Working Capital Requirements (WCR) to maintain the activities related to the operating cycle. In this paper, we introduce a first link between tactical planning and the financial aspects of WCR. The concept of WCR is widely used in practice to assess the financial situation at any time. We propose a new generic WCR model which allows us to evaluate the company´s financial situation during the planning horizon. In addition, we develop a dynamic lot-sizing-based model with WCR modeling for singlesite, single-level, single-product and infinite capacity cases. An exact algorithm is also presented with numerical tests in order to compare our approach with the traditional dynamic lot-sizing model.