LOT-SIZING WITH RANDOM YIELDS - A REVIEW

This paper reviews the literature on quantitatively-oriented approache s for determining lot sizes when production or procurement yields are random. We discuss issues related to the modeling of costs, yield unce rtainty, and performance in the context of systems with random yields. We provide a review of the existing literature, concentrating on desc riptions of the types of problems that have been solved and important structural results. We identify a variety of shortcomings of the liter ature in addressing problems encountered in practice, and suggest dire ctions for future research.