Setup-time reduction and capacity management: A marginal-cost approach

Setup-time reduction and capacity management: A marginal-cost approach

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Article ID: iaor19911958
Country: United States
Volume: 31
Start Page Number: 55
End Page Number: 59
Publication Date: Jul 1990
Journal: Production and Inventory Management Journal
Authors: ,
Abstract:

This article examines the problem of satisfying production requirements with a capacity-constrained situation. Two options are studied: capacity expansion and reducing capacity requirement (setup reduction). A simple procedure is presented for helping the manager evaluate the relative effectiveness of these two options. An example to illustrate the overall usefulness of the procedure is included.

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