A planning model for lot production on short planning horizon.

This paper studies the short-range production planning for a machine shop required to produce many different items so as to remain within capacity limitation. A new model is proposed in which the number of setups, production quantity and over-time for each period are determined in the first step and the production-lot for each item is scheduled in the second step. As an approximation, the linear programming model is suggested and some sample problems are solved. This result means that the linear programming problems can be rapidly solved and their solution should provide a good approximation.