An economic production quantity model with flexibility and reliability considerations

An economic production quantity model with flexibility and reliability considerations

0.00 Avg rating0 Votes
Article ID: iaor1988912
Country: Netherlands
Volume: 39
Issue: 2
Start Page Number: 174
End Page Number: 179
Publication Date: Mar 1989
Journal: European Journal of Operational Research
Authors:
Keywords: programming: geometric
Abstract:

The classical economic production quantity (EPQ) model assumes that items are produced by a perfectly reliable production process with a fixed set-up cost. While the reliability of the production process cannot be perfect without a price, its set-up cost can be reduced with investment in flexibility improvement. An EPQ model with a flexible and imperfect production process is proposed in this paper. This inventory optimization problem is then formulated as a geometric program (GP) and solved to obtain closed-form optimal solutions. After the theoretical treatment, a numerical example is provided to illustrate how the GP theories are applied to solve a given problem. Finally some aspects of post-optimality sensitivity analysis based on the GP approach are discussed.

Reviews

Required fields are marked *. Your email address will not be published.