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ECONOMIC ORDER QUANTITIES BASED ON UNIT‐LOAD AND MATERIAL‐HANDLING CONSIDERATIONS
Author(s) -
Tanchoco Jose M. A.,
Davis Robert P.,
Wysk Richard A.
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.tb01156.x
Subject(s) - minification , unit cost , total cost , mathematical optimization , dynamic programming , computer science , unit (ring theory) , holding cost , production (economics) , process (computing) , function (biology) , carrying cost , inventory cost , order (exchange) , production cost , factor cost , mathematics , economics , engineering , microeconomics , mechanical engineering , supply chain , mathematics education , macroeconomics , finance , evolutionary biology , political science , law , biology , operating system
In this paper, an important but frequently overlooked aspect of production batch‐size planning is addressed: namely, the consideration of unit load and material handling. Thus, an additional cost factor to account for the transportation of unit loads is incorporated in the total cost function which is typically broken down into reorder cost, inventory holding cost, and backorder cost. A cost minimization model is developed that includes constraints related to volume and weight restrictions on unit loads and in‐process storage space. A dynamic programming procedure is utilized to find the minimum cost solution. An example problem is also given.