Two Modifications Of The Silver-Meal Lot Sizing Heuristic

The Silver-Meal heuristic has intuitive appeal and has performed very well in lot sizing decisions. However, under conditions of sharply decreasing demand or a high fraction of periods with no demand, use of the method can produce significant cost penalties. In this paper two modifications of the heuristic are presented. They are intuitively appealing, they eliminate high cost penalties and they require reasonable computational effort.