An optimal batch size for a just-in-time manufacturing system

This paper addresses the problem of a manufacturing system that procures raw materials from suppliers in a lot and processes them to convert to finished products. It proposes an ordering policy for raw materials to meet the requirements of a production facility. In turn, this facility must deliver finished products demanded by outside buyers at fixed interval points in time. In this paper, first we estimate production batch sizes for a JIT delivery system and then we incorporate a JIT raw material supply system. A simple algorithm is developed to compute the batch sizes for both manufacturing and raw material purchasing policies. Computational experiences of the problem are also briefly discussed.