Optimal batch size and raw material ordering policy for a production system with a fixed-interval, lumpy demand delivery system
Document Type
Article
Publication Date
3-22-1996
Abstract
The paper develops an ordering policy for raw materials, to meet the demands of a production facility which supplies a fixed quantity of finished products to outside buyers, at a fixed interval of time. In this model, an optimal multi-order policy for procurement of raw materials for a single manufacturing batch is developed to minimize the total cost. An integer approximation is adopted to refine the optimal solution. A worst-case scenario is also analyzed to demonstrate the effect of the setup costs on the total cost of the inventory system.
Publication Source (Journal or Book title)
European Journal of Operational Research
First Page
593
Last Page
608
Recommended Citation
Sarker, B., & Parija, G. (1996). Optimal batch size and raw material ordering policy for a production system with a fixed-interval, lumpy demand delivery system. European Journal of Operational Research, 89 (3), 593-608. https://doi.org/10.1016/0377-2217(94)00277-0