Abstract
This study investigates replenishment planning in the case of discrete delivery time, where demand is seasonal. The study is motivated by a case study of a soft drinks company in Germany, where data concerning demand are obtained for a whole year. The investigation focused on one type of apple juice that experiences a peak in demand during the summer. The lot-sizing problem reduces the ordering and the total inventory holding costs using a mixed-integer programming (MIP) model. Both the lot size and cycle time are variable over the planning horizon. To obtain results faster, a dynamic programming (DP) model was developed, and run using R software. The model was run every week to update the plan according to the current inventory size. The DP model was run on a personal computer 35 times to represent dynamic planning. The CPU time was only a few seconds. Results showed that initial planning is difficult to follow, especially after week 30, and the service level was only 92%. Dynamic planning reached a higher service level of 100%. This study is the first to investigate discrete delivery times, opening the door for further investigations in the future in other industries.