Abstract
In this paper, a new and efficient heuristic algorithm is presented to determine the production capacity in a new facility under the effect of learning. Different demand patterns are studied while deciding the capacity requirements. Further, the learning effects due to human-machine interaction often found in a manufacturing system are considered during the development of the model. A computer program is developed and interfaced with XMP software on a Sun 3/60 workstation. Several numerical examples are presented to illustrate the heuristic algorithm.