An economic manufacturing quantity model with learning effects

This paper considers the calculation of economic manufacturing quantity (EMQ) under the influence of learning. The size of each order is assumed to be large enough to allow the manufacturing learning phenomenon to manifest itself. The set-up cost is also assumed to decline as a result of learning over the life of the product. These two types of learning phenomena are incorporated in the classical EMQ model to compute the optimal manufacturing quantities and number of orders. The special case of equal manufacturing quantities is then considered. After the theoretical treatment, several numerical examples are solved to study the effect of assuming equal manufacturing quantities on the optimal solutions. The results indicate that the assumption of equal manufacturing quantities not only simplifies the process of determining the optimal solutions but also provides close approximations to the optimal solutions.