Lot sizing problem in production planning aims to optimize production costs (processing, setup and holding cost) by fulfilling demand and resources capacity costraint. The Capacitated Lot sizing Problem (CLSP) model aims to balance the setup costs and inventory costs to obtain optimal total costs. The object of this study was a plastic component manufacturing company. This study use CLSP model, considering process costs, holding costs and setup costs, by calculating product cycle and setup time. The constraint of this model is the production time capacity and the storage capacity of the finished product. CLSP can reduce the total production cost by 4.05% and can reduce setup time by 46.75%.
Keyword: Lot size, CLSP, Total production cost.
