An economic lot-sizing technique, II: Mathematical analysis of the part-period algorithm

The purpose of this paper is to analyze the solution of the Part Period Algorithm (PPA) to the economic lot-size problem with known future demands as presented by J. J. DeMatteis in Part I of this paper. Our model assumes that the manufacturing (or purchasing) cost function is a straight line with positive setup (or ordering) cost and non-negative slope; this cost function and the unit inventory holding cost are time invariant.