Lot Sizing Problem Under Lead-Time Uncertainty

In the supply chain, lead time uncertainty affects the effectiveness of planning. This paper discusses a lot sizing problem with uncertain lead times modelled by intervals. First, we propose to evaluate the impact of uncertainty on a given production plan by computing a best and a worst production plan over all lead time scenarios. Then, a method based on \(R^*_e\) is proposed for choosing a compromise production plan. Some methods for solving the problems based on mixed integer programming formulations are proposed. Finally, the results are illustrated and discussed using an example.