Optimal policy for set-up time reduction in a multistage production inventory system

Abstract

A batch production-inventor y system consisting of multiple stages with an optimal policy of set-up time reduction and a ®xed increment cost are discussed. The ratio of set-up time reduction as a decision variable under various cases of demand in the batch production-inventor y model is considered. The ratio of set-up time reduction and lot size are solved simultaneously to obtain an optimal value of the total annual cost. A numerical example is presented to demonstrate the accuracy of the proposed method.

Analysis of EPQ Model Based on Activity-Based Costing

“…Kreng et al(2000) considered the ratio of setup time reduction as a decision variable under various cases of demand in the EPQ model. Wu(2002) investigated setup cost reduction in multi-stage production systems. However, the above literatures only consider one of the assumptions in deriving the classical EPQ model, namely, fixed setup cost.…”

An optimal setup cost reduction and lot size for economic production quantity model with imperfect quality and quantity discounts

“…[5,6,35,22,2]) extended quantity discounts to deteriorating and perishable products, and then construct several efficient inventory models. Other extensions of the EOQ/EPQ models with quantity discounts could be found in Lin et al [11], Mendoza and Ventura [33], Mansini et al [47], Lee et al [32], Meena and Sarmah [20], and Venegas and Ventura [51]. All of these researchers recognize that quantity discounts provided by the supplier may significantly influence the buyer s decision making.…”