Jd. Hong et al., DYNAMIC SETUP REDUCTION IN PRODUCTION LOT-SIZING WITH NONCONSTANT DETERMINISTIC DEMAND, European journal of operational research, 90(1), 1996, pp. 182-196
Citations number
33
Categorie Soggetti
Management,"Operatione Research & Management Science
We examine three production policies under nonconstant, deterministic
demand and dynamic setup cost reduction, where a decision to invest in
setup reduction is made at the beginning of each period of a planning
horizon. The three production policies are the reorder point, order q
uantity (s, Q) policy; the fixed production cycle, variable order quan
tity (t, Q(i)) policy; and the variable production cycle, variable ord
er quantity (t(i), Q(i)), we study the behavior of the total relevant
cost and develop a lot sizing and an investment solution procedure. Nu
merical examples are provided and dynamic setup cost reduction is comp
ared with static setup cost reduction, where the decision to invest in
setup reduction is made only at the initial setup.