Affiliation:
1. SAP AG, Germany
2. University of Liechtenstein, Germany
Abstract
In this paper, the authors propose a non-linear cost function based on ecological considerations for lot-size planning. The classical approaches of lot-size optimization, the Wagner-Whitin algorithm and the Part-Period Balancing heuristic, are enhanced with so-called eco-factors. These eco-enhanced approaches combined with eco-balancing help to reduce overall production costs. Simultaneously, the environmental impact is also reduced.
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