Abstract
In this article, we consider the production planning problem in the presence of (dis)economies-of-scale in production costs on a rolling horizon basis with a fixed forecast horizon. We propose variants of three well-known and commonly used heuristics (Wagner–Whitin, Silver–Meal and Least Unit Cost) adapted for this particular setting. In an extensive numerical study with demands exhibiting stationary, increasing and decreasing trends and seasonality, we demonstrate that having longer forecast horizon is less effective in obtaining more cost effective production plans when the production cost function is convex and also when fixed setup cost is lower, which both are proxy to lack of economies-of-scale.
Disclosure statement
No potential conflict of interest was reported by the author(s).
ORCID
Ramez Kian http://orcid.org/0000-0001-8786-6349
Emre Berk http://orcid.org/0000-0001-9674-5194
Ülkü Gürler http://orcid.org/0000-0002-7273-3743
Baback Yazdani http://orcid.org/0000-0001-9484-8552