An optimal batch size for a production system operating under a just-in-time delivery system

The model determines an economic manufacturing quantity and recommends a raw material ordering policy to deliver a fixed amount of finished products at a regular interval within the production cycle time. In this paper, the authors estimate the batch size from the lower bound concept of the JIT delivery amount. An efficient algorithm is developed to compute the optimal or near optimal batch sizes for both manufacturing and raw material ordering policies. Results and computational complexity of the problem are also discussed.