Simple policies in the economic lot scheduling problem with zero setup costs

The economic lot scheduling problem is analysed for the case when the cost of setups, but not their duration, is assumed to be zero. This would be the case when setups are performed by the machine operators, or when management's goal is holding-cost reduction. Theoretical results are presented describing when the common cycle solution of producing one lot of every item every cycle is optimal or near optimal. Computational results using simulated data are then presented which show that the common cycle solution is nearly optimal in a wide range of practical situations.