Article ID: | iaor1997842 |
Country: | United Kingdom |
Volume: | 47 |
Issue: | 7 |
Start Page Number: | 954 |
End Page Number: | 960 |
Publication Date: | Jul 1996 |
Journal: | Journal of the Operational Research Society |
Authors: | Hill Roger M. |
Keywords: | inventory |
This note considers a model in which a manufacturing company purchases a raw material, manufacturers a product (at a finite rate) and ships a fixed quantity of the product to a single customer at fixed and regular intervals of time. as specified by the customer. In general there are several shipments made during each production run. The objective is to determine a purchasing and production schedule which minimixes the total cost of purchasing, manufacturing and stockholding. It extends previously published work by considering the possibility that a single raw material purchase provides stock for several production runs or that several raw material purchases provide stock for a single production run.