Discussion of Lot Sizing Approaches and their Influence on Economic Production

Lot sizing is a substantial factor of economic production. There are various lot sizing approaches consideringthe same cost factors in different ways. Their results are usually quite similar. A common weakness of all lotsizing approaches is the limited consideration of relevant cost factors. The costs, which are neglected, usuallyrise with increasing lot sizes. This leads to illusory „exact‟ results because the lot sizes calculated aregenerally too large. This paper compares functions and results of different lot sizing approaches anddiscusses neglected cost factors. In conclusion, an estimation of real economical lot sizes is presented.