In this paper, the authors analyze an (s,Q) policy for a single-stage batch manufacturing system where the input items are gradually converted to the end product at a finite rate during the manufacturing period. The effects of setup reduction are considered. The authors assume that the demand for the end product is a general deterministic function of time horizon and that the input items are procured externally. The problem of minimizing the combined inventory costs of the end product and the input items is formulated as a mathematical programming problem, and a general solution methodology is developed. Using the power-form demand rate function, the authors present a numerical example.
