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Production lot sizing under setup and worker learning

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  • Kirk R. Karwan
  • Joseph B. Mazzola
  • Richard C. Morey

Abstract

Previous lot‐sizing models incorporating learning effects focus exclusively on worker learning. We extend these models to include the presence of setup learning, which occurs when setup costs exhibit a learning curve effect as a function of the number of lots produced. The joint worker/setup learning problem can be solved to optimality by dynamic programming. Computational experience indicates, however, that solution times are sensitive to certain problem parameters, such as the planning horizon and/or the presence of a lower bound on worker learning. We define a two‐phase EOQ‐based heuristic for the problem when total transmission of worker learning occurs. Numerical results show that the heuristic consistently generates solutions well within 1% of optimality.

Suggested Citation

  • Kirk R. Karwan & Joseph B. Mazzola & Richard C. Morey, 1988. "Production lot sizing under setup and worker learning," Naval Research Logistics (NRL), John Wiley & Sons, vol. 35(2), pages 159-175, April.
    • Handle: RePEc:wly:navres:v:35:y:1988:i:2:p:159-175
    DOI: 10.1002/1520-6750(198804)35:23.0.CO;2-1
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    References listed on IDEAS

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    1. Evan L. Porteus, 1985. "Investing in Reduced Setups in the EOQ Model," Management Science, INFORMS, vol. 31(8), pages 998-1010, August.
    2. Evan L. Porteus, 1986. "Investing in new parameter values in the discounted EOQ model," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 33(1), pages 39-48, February.
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    Cited by:

    1. Jaber, Mohamad Y. & Bonney, Maurice, 2003. "Lot sizing with learning and forgetting in set-ups and in product quality," International Journal of Production Economics, Elsevier, vol. 83(1), pages 95-111, January.
    2. 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.
    3. 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.
    4. Vernon Ning Hsu, 2000. "Dynamic Economic Lot Size Model with Perishable Inventory," Management Science, INFORMS, vol. 46(8), pages 1159-1169, August.
    5. Shtub, Avraham & LeBlanc, Larry J. & Cai, Ziyong, 1996. "Scheduling programs with repetitive projects: A comparison of a simulated annealing, a genetic and a pair-wise swap algorithm," European Journal of Operational Research, Elsevier, vol. 88(1), pages 124-138, January.
    6. Jaber, Mohamad Y. & Bonney, Maurice, 1999. "The economic manufacture/order quantity (EMQ/EOQ) and the learning curve: Past, present, and future," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 93-102, March.
    7. Jaber, Mohamad Y. & Bonney, Maurice, 1997. "The effect of learning and forgetting on the economic manufactured quantity (EMQ) with the consideration of intracycle backorders," International Journal of Production Economics, Elsevier, vol. 53(1), pages 1-11, November.

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