Production lot sizing under setup and worker learning

Kirk R. Karwan, Joseph B. Mazzola and Richard C. Morey

Naval Research Logistics (NRL), 1988, vol. 35, issue 2, 159-175

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.

Date: 1988
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https://doi.org/10.1002/1520-6750(198804)35:23.0.CO;2-1

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