Title: An optimal lotsizing determination in a two-echelon purchasing/production system
Abstract: Abstract Multi-stage optimal lotsizing problems are extremely intractable and hard to solve. This paper discusses an economical lotsizing problem in a two-echelon purchasing/production system, where material losses caused by deterioration and failure in stock and production stages are taken into consideration. With the aid of the techniques of first and second derivatives, economic order quantity (EOQ) can be expressed by means of economic production quantity (EPQ). It is possible to derive cost reductions in the purchasing/production system. This system was applied using data from a DPE (Developing, Printing and Enlarging) factory and numerical experiments demonstrated that the total cost was reduced by 22-4%. Keywords: inventory controltwo-echelon purchasing/production systemEOQEPQ
Publication Year: 1995
Publication Date: 1995-11-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 1
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