A New Classification Framework for the Economic Lot Scheduling Problem

The Economic Lot Scheduling Problem (ELSP) is a pivotal challenge in the field of manufacturing, characterized by the quest for optimal batch sizes to produce multiple products efficiently on a single machine. This problem entails the development of diverse strategies, encompassing independent solutions, adjustments to production parameters, setup times, and responses to varying demand characteristics. Central to the lot scheduling and sizing decisions is the critical trade-off between inventory holding costs and setup costs. This thesis embarks on an extensive journey through the historical evolution of lot sizing models, tracing its roots from the foundational Economic Order Quantity (EOQ) model introduced by Ford W. Harris. This progression ultimately leads to the derivation of the Economic Production Quantity model based on the E.W. Taft model, paving the way for the transition to the ELSP. A vital component of this exploration is a comprehensive literature survey, providing insight into the historical and contemporary landscape of the field. Furthermore, this research introduces a new classification framework, designed to accommodate the multifaceted aspects influencing problem complexity, thus aligning more closely with industrial practices. The fusion of historical insights and modern approaches underscores the significance of this work in bridging the gap between theoretical knowledge and practical implementation in the complex domain of lot scheduling. The ELSP holds substantial academic and industrial significance, promising enhanced manufacturing efficiency, demand management, and cost optimization. By integrating a thorough literature survey, this thesis strives to illuminate the past, present, and future of lot scheduling in contemporary manufacturing contexts.