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Lot sizing with learning and forgetting in setups: Analytical results and insights
Authors:Sunantha Teyarachakul  Suresh Chand  Michal Tzur
Institution:1. Department of Information Systems and Decision Sciences, Craig School of BusinessCalifornia State University, Fresno, California, USA 93740;2. Krannert School of Management, Operations Management AreaPurdue University, West Lafayette, Indiana, USA 47907;3. Department of Industrial Engineering, Faculty of EngineeringTel Aviv University, Tel Aviv, Israel 69978
Abstract:This article considers the dynamic lot sizing problem when there is learning and forgetting in setups. Learning in setups takes place with repetition when additional setups are made and forgetting takes place when there is a break between two successive setups. We allow the amount forgotten over a break to depend both on the length of the break and the amount of learning at the beginning of the break. The learning and forgetting functions we use are realistic. We present several analytical results and use these in developing computationally efficient algorithms for solving the problem. Some decision/forecast horizon results are also developed, and finally we present managerial insights based on our computational results. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 93–108, 2016
Keywords:lot sizing  learning and forgetting in setups  decision/forecast horizons
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