The effect of economies-of-scale on the performance of lot-sizing heuristics in rolling horizon basis

Kian, R. ORCID: 0000-0001-8786-6349, Berk, E., Gürler, Ü., Rezazadeh, H. and Yazdani, B. ORCID: 0000-0001-9484-8552, 2020. The effect of economies-of-scale on the performance of lot-sizing heuristics in rolling horizon basis. International Journal of Production Research. ISSN 0020-7543

[img] Text
1301327_Kian.pdf - Post-print
Full-text access embargoed until 27 February 2021.

Download (1MB)

Abstract

In this article, we consider the production planning problem in the presence of (dis)economies-of-scale in production costs on a rolling horizon basis with a fixed forecast horizon. We propose variants of three well-known and commonly used heuristics (Wagner–Whitin, Silver–Meal and Least Unit Cost) adapted for this particular setting. In an extensive numerical study with demands exhibiting stationary, increasing and decreasing trends and seasonality, we demonstrate that having longer forecast horizon is less effective in obtaining more cost effective production plans when the production cost function is convex and also when fixed setup cost is lower, which both are proxy to lack of economies-of-scale.

Item Type: Journal article
Publication Title: International Journal of Production Research
Creators: Kian, R., Berk, E., Gürler, Ü., Rezazadeh, H. and Yazdani, B.
Publisher: Informa UK
Date: 26 February 2020
ISSN: 0020-7543
Identifiers:
NumberType
10.1080/00207543.2020.1730464DOI
1301327Other
Divisions: Schools > Nottingham Business School
Record created by: Jonathan Gallacher
Date Added: 03 Mar 2020 14:11
Last Modified: 30 Sep 2020 10:41
URI: http://irep.ntu.ac.uk/id/eprint/39360

Actions (login required)

Edit View Edit View

Views

Views per month over past year

Downloads

Downloads per month over past year