| Article ID: | iaor20001968 |
| Country: | India |
| Volume: | 36 |
| Issue: | 2 |
| Start Page Number: | 135 |
| End Page Number: | 150 |
| Publication Date: | Jun 1999 |
| Journal: | OPSEARCH |
| Authors: | Bhandari R.M., Sharma P.K. |
| Keywords: | economic order |
The cost of production per unit of a commodity is derived from the particular production function under which it is being produced. We formulate a generalized cost function, which brings production flexibility of a manufacturing system. We illustrate the results with a numerical example. We further explain the principle of Equi-marginal Returns and give numerical sensitivity analysis.