Article ID: | iaor1991932 |
Country: | United States |
Volume: | 36 |
Issue: | 8 |
Start Page Number: | 985 |
End Page Number: | 998 |
Publication Date: | Aug 1990 |
Journal: | Management Science |
Authors: | Davis Samuel G. |
Keywords: | inventory, scheduling, programming: goal |
Single capacitated production facilities where multiple products are produced pose particularly challenging scheduling problems. The traditional economic lot size calculation reflects the optimum production batch size in the light of the tradeoff between inventory carrying costs and order preparation/setup costs. However, these calculations are straightforward only when applied to a single product. When multiple products are produced on the same facility, the production quantities must be translated into a schedule which is within the capacity of the facility and results in the timely satisfaction of demand for each product. Previously published solution procedures directly address the capacity issue. A far less tractable issue is the stockout concern. This issue has previously been addressed by either (1) imposing (often overly restrictive) constraints