Wagner-Whitin Algorithm -Part 2
I received an email from a friend and he was asking how he can use the lot sizing spreadsheet in the last post.The whole purpose of this quick note is to clear some of the confusions.
Second: This spreadsheet is developed in “Resolver One” which is a commercial spreadsheet similar to Excel. The good thing is that it is free for academics. It also uses Python instead of VBA which is a huge advantage for me.
In order to use the algorithm (shown below), change the number of periods, holding costs, and setup costs for different periods and click “Calculate”. You will see the updated cost matrix and the code will spit out in which stages you’d better pay the setup cost and avoid the holding cost. I had so much fun developing it and I hope it comes in handy for you too.