Optimal Lot Sizing and Setup Cost Reduction for Deteriorating Production System
نویسنده
چکیده
In this paper, we extend Porteus (1986) to generalize the economic production quantity (EPQ) model with finite production rate and to derive an exact expression for the expected total annual cost function when maintenance actions and capital investment in setup cost reduction are adopted. In addition, the uniqueness property of the optimal lot size and the bounds of optimal lot size are derived whether or not the investment is made for setup cost reduction. Furthermore, a numerical example reveal that Porteus’s solution procedure may cause significant penalty costs sometimes such that validities of Theorems as those proposed in Porteus (1986) are questionable. So, the main purpose of this paper is not only to remove shortcomings but also to present an exact derivation of the expected total annual cost function and provide an appropriate solution algorithm to find the optimal lot size and setup cost.
منابع مشابه
Integrated JIT Lot-Splitting Model with Setup Time Reduction for Different Delivery Policy using PSO Algorithm
This article develops an integrated JIT lot-splitting model for a single supplier and a single buyer. In this model we consider reduction of setup time, and the optimal lot size are obtained due to reduced setup time in the context of joint optimization for both buyer and supplier, under deterministic condition with a single product. Two cases are discussed: Single Delivery (SD) case, and Multi...
متن کاملLot sizing with rework and different inspection costs
This paper deals with the single machine multi-product lot scheduling problem in which defective items are produced in any production run of each product. We have adopted the common cycle scheduling policy and assumed that the setup times for production of each product can be non-zero. Further, we have assumed that defective items will be reworked and the inspection costs during the normal prod...
متن کاملJOINT ECONOMIC LOT SIZING PROBLEM IN A TWO ECHELON PRODUCTION SYSTEM WITH FINITE PRODUCTION RATE AND LEAD TIME
In this study, a two-echelon supplier-manufacturer system with finite production rate and lead time is proposed. It is assumed that shortage is not permitted and the lot size of manufacturer (second echelon) is m-factors of the lot size of supplier (first echelon) and supplier can supply the manufacturer’s lot size in several shipments in each cyc...
متن کاملOptimal Setup Cost Reduction and Lot Sizing with Imperfect Production Processes and Quantity Discounts
متن کامل
An economic production model for deteriorating items and time dependent demand with rework and multiple production setups
Recently, much emphasis has given to study the control and maintenance of production inventories of the deteriorating items. Rework is one of the main issues in reverse logistic and green supply chain, since it can reduce production cost and the environmental problem. Many researchers have focused on developing rework model, but few of them have developed model for deteriorating items. Due to t...
متن کامل