Lot sizing with learning and forgetting in setups: Analytical results and insights

This article considers the dynamic lot sizing problem when there is learning and forgetting in setups. Learning in setups takes place with repetition when additional setups are made and forgetting takes place when there is a break between two successive setups. We allow the amount forgotten over a break to depend both on the length of the break and the amount of learning at the beginning of the break. The learning and forgetting functions we use are realistic. We present several analytical results and use these in developing computationally efficient algorithms for solving the problem. Some decision/forecast horizon results are also developed, and finally we present managerial insights based on our computational results.