Lot sizing under (Q, R) policy in a capcity constrained manufacturing facility
✍ Scribed by Gabriel R. Bitran; Devanath Tirupati
- Publisher
- Elsevier Science
- Year
- 1984
- Tongue
- English
- Weight
- 818 KB
- Volume
- 1
- Category
- Article
- ISSN
- 0736-5845
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✦ Synopsis
Traditional approaches to lot sizing and inventory control consider uncertainties in either the demand or manufacturing process but not both. In these models it is usually assumed that the lead times are independent and identically distributed, but this is not realistic in many practical instances. In this paper we consider the lot sizing problem for items with stochastic demands and manufacturing lead times. It is assumed that the inventory of the finished product is controlled by continuous review policy of Q,R type--order quantity, order point system--and the problem is to determine optimal Q and R. We examine the decision parameters under a variety of conditions using exact and approximate methods.