Article ID: | iaor1989154 |
Country: | United States |
Volume: | 35 |
Issue: | 4 |
Start Page Number: | 447 |
End Page Number: | 458 |
Publication Date: | Apr 1989 |
Journal: | Management Science |
Authors: | Lee Sang-Bum, Zipkin Paul H. |
Keywords: | inventory |
This paper considers a dynamic lot-size model with make-or-buy decisions. In each period, the production level may not exceed a given capacity, but the purchase is unrestricted. The costs for production, purchase and inventory are concave. The problem is to find a minimum-cost production and purchase schedule that satisfies known demands over