ECONOMIC LOT SCHEDULING PROBLEM WITH SEQUENCE-DEPENDENT SETUP COSTS.

A common problem in manufacturing industries involves scheduling a production facility for which the setup costs (or setup times) are sequence dependent; the setup or changeover cost from one product to another depends on which two products are involved. To be more specific, the setup cost actually depends upon the physical characteristics of the two products. This model addresses the sequence-dependent setup costs of the products and illustrates the total reduction in inventory carrying cost and setup cost that can be achieved by exploiting their sequence dependencies.