Izvorni znanstveni članak
Solving finite production rate model with scrap and multiple shipments using algebraic approach
Singa Wang Chiu
; Department of Business Administration, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Yuan-Shyi Peter Chiu
; Department of Industrial Engineering, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Chih-An K. Lin
; Department of Industrial Engineering, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Ching-Yun Chang
; Department of Industrial Engineering, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Sažetak
This paper solves a finite production rate (FPR) model with scrap and multiple shipments using an algebraic method. Classic FPR model assumes a continuous inventory issuing policy to satisfy demand and perfect quality production for all items produced. However, in real life vendor-buyer integrated production-inventory system, multiple shipment policy is practically used in lieu of a continuous issuing policy and generation of defective items during production run is inevitable. In this study, it is assumed that all defective items are scrap and the perfect quality items can only be delivered to customers if the whole lot is quality assured at the end of the production run. A conventional approach for solving the FPR model is the use of differential calculus on the long-run average cost function with the need to prove optimality first. This paper demonstrates that optimal lot size and its overall costs
for the aforementioned FPR model can be derived without derivatives. As a result, it enables students or practitioners who have little knowledge of calculus to understand and to handle with ease the real-life FPR model.
Ključne riječi
FPR model; production; optimal lot size; scrap; multiple shipments
Hrčak ID:
185011
URI
Datum izdavanja:
31.1.2012.
Posjeta: 315 *