Article ID: | iaor20081670 |
Country: | Netherlands |
Volume: | 108 |
Issue: | 1/2 |
Start Page Number: | 359 |
End Page Number: | 367 |
Publication Date: | Jan 2007 |
Journal: | International Journal of Production Economics |
Authors: | Jaber Mohamad Y., Bonney Maurice |
Keywords: | learning |
Optimal lot-size formulae typically assume that unit manufacturing costs are constant. This is not true while learning is in progress. Many researchers have studied the effect of learning on the lot-size problem. These works commonly assume an invariant learning slope throughout the production–planning horizon. When learning rates (LRs) are dependent on the number of units produced in a production cycle, then the assumption of invariant LRs might produce erroneous lot-size policies. This paper investigates the effect of lot-size dependent learning and forgetting rates on the lot-size problem by incorporating the dual-phase learning–forgetting model into the economic manufacture quantity model. Numerical examples are provided to illustrate the solution procedure. These compare different approaches to lot sizing with learning and forgetting effects.