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A Dynamic Lot Sizing Model with Learning in Setups

Author

Listed:
  • Suresh Chand

    (Purdue University, West Lafayette, Indiana)

  • Suresh P. Sethi

    (University of Toronto, Toronto, Canada)

Abstract

This paper considers the dynamic lot sizing problem of H. M. Wagner and T. M. Whitin with the assumption that the total cost of n setups is a concave nondecreasing function of n . Such setup costs could arise from the worker learning in setups and/or technological improvements in setup methods. An efficient dynamic programming algorithm is developed to solve a finite horizon problem and results are presented to find decision/forecast horizons. Several new results presented in the paper have potential use in solving other related problems.

Suggested Citation

  • Suresh Chand & Suresh P. Sethi, 1990. "A Dynamic Lot Sizing Model with Learning in Setups," Operations Research, INFORMS, vol. 38(4), pages 644-655, August.
    • Handle: RePEc:inm:oropre:v:38:y:1990:i:4:p:644-655
    DOI: 10.1287/opre.38.4.644
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    Citations

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    Cited by:

    1. Mazzola, Joseph B. & Neebe, Alan W. & Rump, Christopher M., 1998. "Multiproduct production planning in the presence of work-force learning," European Journal of Operational Research, Elsevier, vol. 106(2-3), pages 336-356, April.
    2. Chiu, Huan Neng & Chen, Hsin Min, 2005. "An optimal algorithm for solving the dynamic lot-sizing model with learning and forgetting in setups and production," International Journal of Production Economics, Elsevier, vol. 95(2), pages 179-193, February.
    3. Ji, Xiang & Li, Guo & Wang, Zhaohua, 2017. "Impact of emission regulation policies on Chinese power firms’ reusable environmental investments and sustainable operations," Energy Policy, Elsevier, vol. 108(C), pages 163-177.
    4. Voros, Jozsef, 2002. "On the relaxation of multi-level dynamic lot-sizing models," International Journal of Production Economics, Elsevier, vol. 77(1), pages 53-61, May.
    5. Voros, Jozsef, 1995. "Setup cost stability region for the multi-level dynamic lot sizing problem," European Journal of Operational Research, Elsevier, vol. 87(1), pages 132-141, November.
    6. Kavindra Malik & Yufei Wang, 1993. "An improved algorithm for the dynamic lot‐sizing problem with learning effect in setups," Naval Research Logistics (NRL), John Wiley & Sons, vol. 40(7), pages 925-931, December.
    7. Jans, R.F. & Degraeve, Z., 2005. "Modeling Industrial Lot Sizing Problems: A Review," ERIM Report Series Research in Management ERS-2005-049-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    8. Li, Georgi & Rajagopalan, S., 1998. "A learning curve model with knowledge depreciation," European Journal of Operational Research, Elsevier, vol. 105(1), pages 143-154, February.
    9. Trappey, Amy J.C. & Trappey, Charles V. & Liu, Penny H.Y. & Lin, Lee-Cheng & Ou, Jerry J.R., 2013. "A hierarchical cost learning model for developing wind energy infrastructures," International Journal of Production Economics, Elsevier, vol. 146(2), pages 386-391.
    10. Chung-Lun Li & Vernon Ning Hsu & Wen-Qiang Xiao, 2004. "Dynamic Lot Sizing with Batch Ordering and Truckload Discounts," Operations Research, INFORMS, vol. 52(4), pages 639-654, August.
    11. Awi Federgruen & Michal Tzur, 1996. "Detection of minimal forecast horizons in dynamic programs with multiple indicators of the future," Naval Research Logistics (NRL), John Wiley & Sons, vol. 43(2), pages 169-189, March.
    12. Hoesel, C. P. M. Van & Wagelmans, A. P. M., 2000. "Parametric analysis of setup cost in the economic lot-sizing model without speculative motives," International Journal of Production Economics, Elsevier, vol. 66(1), pages 13-22, June.
    13. Vernon Ning Hsu, 2000. "Dynamic Economic Lot Size Model with Perishable Inventory," Management Science, INFORMS, vol. 46(8), pages 1159-1169, August.
    14. Sunantha Teyarachakul & Suresh Chand & Michal Tzur, 2016. "Lot sizing with learning and forgetting in setups: Analytical results and insights," Naval Research Logistics (NRL), John Wiley & Sons, vol. 63(2), pages 93-108, March.
    15. Diaby, Moustapha, 1995. "Optimal setup time reduction for a single product with dynamic demands," European Journal of Operational Research, Elsevier, vol. 85(3), pages 532-540, September.
    16. Suresh Chand & Tim McClurg & Jim Ward, 1993. "A single‐machine replacement model with learning," Naval Research Logistics (NRL), John Wiley & Sons, vol. 40(2), pages 175-192, March.
    17. Feng Xue & Qiumin Li, 2024. "Forecast Horizon of Dynamic Lot Sizing Problem with Perishable Inventory and Multiple Chain Stores: Shipping and Stockout Cost," Mathematics, MDPI, vol. 12(13), pages 1-17, July.

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