DETERMINISTIC TIME‐VARYING DEMAND LOT‐SIZING MODELS WITH LEARNING AND FORGETTING IN SETUPS AND PRODUCTION

Huan Neng Chiu · Hsin Min Chen · Li Ching Weng

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Supply Chain and Inventory Management Management and Optimization Techniques Scheduling and Optimization Algorithms

Abstract

We study the deterministic time‐varying demand lot‐sizing problem in which learning and forgetting in setups and production are considered simultaneously. It is an extension of Chiu's work. We propose a near‐optimal forward dynamic programming algorithm and suggest the use of a good heuristic method in a situation in which the computational effort is extremely intolerable. Several important observations obtained from a two‐phase experiment verify the goodness of the proposed algorithm and the chosen heuristic method.

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References

1958Dynamic Version of the Economic Lot Size Model 2004Dynamic Version of the Economic Lot Size Model 1983Production and inventory management 1990A Dynamic Lot Sizing Model with Learning in Setups 1994AN ECONOMIC PRODUCTION QUANTITY MODEL WITH LEARNING AND FORGETTING CONSIDERATIONS

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