DETERMINING LOT SIZES AND RESOURCE REQUIREMENTS - A REVIEW

This article concentrates on the lot-sizing and capacity dimensions of production planning. We review selected contributions in four major categories, drawing from both practitioner- and research-based literature. We assess the strengths and weaknesses of these contributions, and suggest promising research avenues. We conclude that capacity limitations, as well as other realities of plant environments, such as scrap, demand uncertainties or inaccurate data, are the Achilles heel of lot-sizing research. Directing attention to these complex environments is a challenge that offers great rewards for actual implementation.