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
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.