Optimal policy for set-up time reduction in a multistage production–inventory system

A batch production–inventory system consisting of multiple stages with an optimal policy of set-up time reduction and a fixed increment cost is discussed. The ratio of set-up time reduction as a decision variable under various cases of demand in the batch production–inventory model is considered. The ratio of set-up time reduction and lot size are solved simultaneously to obtain an optimal value of the total annual cost. A numerical example is presented to demonstrate the accuracy of the proposed method.