THE MULTIITEM SETUP-REDUCTION INVESTMENT-ALLOCATION PROBLEM WITH CONTINUOUS INVESTMENT-COST FUNCTIONS

Authors
LESCHKE JP WEISS EN
Citation
Jp. Leschke et En. Weiss, THE MULTIITEM SETUP-REDUCTION INVESTMENT-ALLOCATION PROBLEM WITH CONTINUOUS INVESTMENT-COST FUNCTIONS, Management science, 43(6), 1997, pp. 890-894
Citations number
12
Categorie Soggetti
Management,"Operatione Research & Management Science","Operatione Research & Management Science
Journal title
Management science → ACNP
ISSN journal
00251909
Volume
43
Issue
6
Year of publication
1997
Pages
890 - 894
Database
ISI
SICI code
0025-1909(1997)43:6<890:TMSIPW>2.0.ZU;2-M
Abstract
In this note, we analyze investment priorities for setup-reduction pro grams in a multi-product system. We provide an objective function tran sformation for the model developed by Porteus multi-product (1985) tha t permits the use of marginal analysis in both the single- and multipl e-item problems. For the multiple-item problem, we show that managers should not reduce the setup for each product to its optimum in sequent ial order. This is in contrast to recommendations found in the existin g literature.