OPTIMAL PRODUCTION LOT-SIZING MODEL CONSIDERING THE BOUNDED LEARNING CASE AND SHORTAGES BACKORDERED

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