Premium
A generalized lot sizing model for the process cycling problem
Author(s) -
Matthews John P.
Publication year - 1980
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/0272-6963(80)90018-2
Subject(s) - sizing , scheduling (production processes) , aggregate (composite) , computer science , aggregate planning , production (economics) , mathematical optimization , holding cost , operations research , process (computing) , production planning , economics , microeconomics , mathematics , art , materials science , composite material , visual arts , operating system
Most scheduling/lot sizing models for the single‐machine problem assume that aggregate demand equals aggregate production; and that backorders are to be avoided. Where working inventories are low, the scheduler may wish to avoid short production runs and willingly incur some backorder penalties so as to increase the length of production runs and reduce setup costs per unit of time. The model proposed here identifies optimal lot sizes with respect to the backorder/setup cost relationships. Use of the model will result in an optimally balanced inventory even when aggregate inventory levels are changing.