ON A VOLUME FLEXIBLE PRODUCTION POLICY FOR A DETERIORATING ITEM WITH TIME-DEPENDENT DEMAND AND SHORTAGES

Shibsankar Sana · Kripasindhu S. Chaudhuri

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Supply Chain and Inventory Management Management and Optimization Techniques Optimization and Mathematical Programming

Abstract

†‡ Scope and Purpose: The scope of the model presented here lies in its application in FMS (Flexible Manufacturing system) which is considered to be one of the best ways to improve production eciency in modern manufacturing concerns. The purpose of the paper is to incorporate the concept of flexibility in the machine production rate of an item into a quantitative production-inventory model having the potential for application in manufacturing industries. The unit production cost is linked to the variable production rate. Physical decay of the stocked item over time is taken into account and shortages in inventory are allowed. All these practical aspects are incorporated into the model with the purpose of making it more realistic.

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References

1983Production and inventory management 1986Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction 1986Economic Production Cycles with Imperfect Production Processes 1991An Economic Order Quantity Model with Demand-Dependent Unit Production Cost and Imperfect Production Processes 1994Economic Production Lot Size Model with Variable Production Rate and Imperfect Quality 1991Optimizing Processing Rates for Flexible Manufacturing Systems 1990Deliberately slowing down output in a family production context 1995The economic production lot size model under volume flexibility

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