In this paper, we construct and analyze inventory and investment in quality im­ provement policies under return on investment (ROI) maximization. In our model, the level of quality is represented by the fraction of an order quantity meeting the quality requirements such £is product specifications. The key contributions of this paper are the establishment of an ROI model and characterization of ...

Problem statement: Lot-size is the clustering of items for transportation or manufacturing processes occurring at the same time. The issue in lot-size problem is to design production processes so that the feasible production quantities are equal to customer demand quantities and the timing of production is such that inventory positions are almost zero. Approach: In this study, we explore the mu...

This paper studies the problem of incorporating both learning and forgetting in setups and production into the dynamic lot-sizing model to obtain an optimal production policy, including the optimal number of production runs and the optimal production quantities during the finite period planning horizon. Since the unit production cost is variable due to the effects of learning and forgetting, th...

n most dynamic planning problems, one observes that an optimal decision at any given stage Idepends on limited information, i.e. information pertaining to a limited set of adjacent or nearby stages. This holds in particular for planning problems over time, where an optimal decision in a given period depends on information related to a limited future time horizon, a so-called forecast horizon, o...

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This paper addresses the problem of the cost effectiveness of equal lot splitting approaches for various lenghts of the time bucket in planning systems. The results of the research indicate that an equal number of subbatches (lots) per time bucket for all products is inefficient. The magnitude of these inefficiencies depends on the time bucket length of the planning system. An appropriate varia...

This paper continues the analysis of a special uncapacitated single item lot sizing problem where a minimum order quantity restriction, instead of the setup cost, guarantees a certain level of production lots. A detailed analysis of the model and an investigation of the particularities of the cumulative demand structure allowed us to develop a solution algorithm based on the concept of minimal ...

In a typical purchasing situation, the issues of price, lot sizing, etc, usually are settled through negotiations between the purchaser and the vendor. Depending on the existing balance of power, the end result of such a bargaining process may be a near-optimal or optimal ordering policy for one of the parties (placing the other in a position of significant disadvantage) or, sometimes, inoptima...

Seasonal items like fruits, fish, winter cosmetics, fashion apparel, etc. generally exhibits different demand patterns at various times during the season. Production and inventory planning must reflect this property for cost effectiveness and optimization of resources. This paper presents two production-inventory models for perishable seasonal products that minimize total inventory costs. The m...