Note on an economic lot scheduling problem under budgetary and capacity constraints

Setup reduction program has become an important manufacturing strategy in today's competitive business environment. Banerjee et al. studied the impact of capital investment in setup reduction on an economic lot scheduling problem with a limited budget. They followed the common cycle approach to formulate the problem and suggested a heuristic procedure for numerical computation. The solution they obtained for the model without setup reduction is infeasible perhaps due to mathematical and/or computational errors. In this note, we point out the mathematical errors involved in their paper and provide efficient solution algorithms to both setup reduction and without setup reduction models.