Multi-level lot-sizing in a rayon yarn company: A case study

This paper presents a case study conducted at a rayon-yarn plant. (For commercial reasons, the identity of the company is concealed.) This study deals with the economic lot-sizing problem in a multi-stage, multi-facility and multi-product production-inventory system. The multi-level lot-sizing model suggested by Gunasekaran et al is used for the application. The application of the model helped to reduce the set-up and in-process inventory carrying costs. The consequences of implementing economic batch sizes obtained from the model are presented and compared with present practice.