Article ID: | iaor2003489 |
Country: | United States |
Volume: | 6 |
Issue: | 2 |
Start Page Number: | 71 |
End Page Number: | 78 |
Publication Date: | Jun 2002 |
Journal: | Journal of Applied Mathematics & Decision Sciences |
Authors: | Goldstein Zvi |
Keywords: | supply chain |
In this paper we present a finite horizon single product single machine production problem. Demand rate and all the cost patterns do not change over time. However, end of horizon effects may require production rate adjustments at the beginning of each cycle. It is found that no such adjustments are required. The machine should be operated either at minimum speed (i.e. production rate = demand rate; shortage is not allowed), avoiding the buildup of any inventory, or at maximum speed, building up maximum inventories that are controlled by the optimal production lot size.