Heuristics

Question 1

Heuristics

Answer 1

techniques designed for solving a problem more quickly when classic methods are too slow for finding an
approximate solution, or when classic methods fail to find any exact solution. This is achieved by trading
optimality, completeness, accuracy, or precision for speed.

Question 2

Cost-Balancing-Heuristic (CBH)

Answer 2

Heuristic method used in dynamic procurement planning. Tries to establish a balance between fixed order
cost and inventory cost by identifying the intercept of the order cost function and the inventory cost function
(cost optimum)

Idea: identify order cost = inventory cost or constellation close to order cost = inventory cost -> this
is the total cost minimum

Order those quantities for which order costs have the smallest absolute difference to fixed
cost per order

Question 3

Cost-Balancing-Heuristic Table

Answer 3

Order period - t1
Periods included in order - t
Order quantity period τ - Dt
Inventory cost quantities τ - Ci
Total order quantity in t1- {Dt
Total inventory cost
Fixed cost per order
Difference total

Question 4

Silver-Meal-Heuristic (SMH)

Answer 4

Heuristic method used in dynamic procurement planning. Tries to establish to minimize the total cost per
period to realize a minimal total cost

Key aspects
• Dynamic procurement analysis = Analysis of several periods combined
• Deterministically fluctuating demand

Idea: Minimize period cost with fluctuating demand per period

Question 5

Silver-Meal-Heuristic Table

Answer 5

t1
t
Dt
Ci
{Dt
Cf + {Ci
Cf + {Ci / ( t - t1 + 1)