Optimal production lot-sizing model considering the bounded learning case and shortages backordered

In this paper, we develop an optimal manufactured lot-sizing model under the consideration of learning and shortages. Here the learning phenomenon conforms to the De Jong bounded learning curve. A one-dimensional search method is presented for determining the unique optimal production schedule, which minimises the sum of labour and material costs, fixed set-up costs, the holding cost and the shortage cost per unit time. A numerical example is used to illustrate the solution procedure; sensitivity analyses are also shown.