Modelling production cost with the effects of learning and forgetting

Defining a dynamic model for calculating production cost is a challenging goal that requires a good fitting ability with real data over time. A novel cost curve is proposed here with the aim of incorporating both the learning and the forgetting phenomenon during both the production phases and the reworking operations. A single-product cost model is thus obtained, and a procedure for fitting the curve with real data is also introduced. Finally, this proposal is validated on a benchmark dataset in terms of mean square error.