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AN APPLIED PROCEDURE FOR DETERMINING THE ECONOMIC LOT SIZES OF MULTIPLE PRODUCTS
Author(s) -
Senju Shizuo,
Fujita Seiichi
Publication year - 1980
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1980.tb01155.x
Subject(s) - simple (philosophy) , range (aeronautics) , computer science , mathematical optimization , production (economics) , operations research , mathematics , economics , microeconomics , philosophy , materials science , epistemology , composite material
Marginal analysis is applied to solve the economic production lot‐size problem. Rather than duplicating past research efforts, this paper emphasizes how marginal analysis can be used to reduce the complexity of large problems and to provide a range of near‐optimal solutions. Problem complexity is reduced through a simple grouping procedure while the range of near‐optimal solutions is organized via a simple figure. Finally, the method of selecting from among the solutions under varying conditions is discussed.