Abstract
In this paper, a multi-group single-level capacitated dynamic lot sizing problem for a GT cell is formulated as a mixed integer programming problem. In the model, group setup time, part setup time, and the effects of setup time on production capacity are discussed in detail. A two-stage heuristic lot sizing algorithm consisting of a cost reduction stage and a feasibility enforcement stage in developed and illustrated by a numerical example. The performance of the proposed algorithm is evaluated using the numerical experiment for various demand patterns and values of cost parameters.
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