Production Lot Sizing with Material Handling Cost Considerations

摘要

The determination of production lot sizes and the assignment of storage space in a warehouse for the produced items are usually treated as two separate problems: The former providing input (space needed) to the latter. In this paper, we treat the decision problems as one with the objective of minimizing total setup, inventory carrying, and warehouse material handling cost. We treat the minimum material handling cost as a continuous function of the lot sizes and develop an algorithm for finding locally optimal solutions of the derived optimization problem. Computational experience is provided and applications to automated warehousing systems are discussed. (Author)