Lot sizing problems must be solved whenever setup times are required the prepare the resource for the production of the considered product or when setup costs arise in order to prepare a resource for the processing of a new product.
In most Advanced Planning Systems, sophisticated approaches to lot sizing are missing. Instead, the old capacity-ignoring methods which are used in a typical MRP/ERP system are still applied. Even if the scheduling step is done by an APS with adequate planning methods, getting wrong data from the preceding lotsizing step with joepardize the feasibility of the planning results. If we take a look on the large body of lot sizing approaches developed in the literature, one might wonder if not some of these lot sizing models could be successfully applied in industrial practice. In the sequel several lot sizing models are illustrated.
Lot Sizing Models for deterministic demand:
- The Economic Production Quantity Model
- Single-Item Dynamic Lotsizing Problem
- Capacitated Lotsizing Problem
- Multi-Level Capacitated Lotsizing Problem