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Frequency approach for treating capacity-constrained multilevel production
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.ORCID iD: 0000-0002-1173-6713
2004 (English)In: International Journal of Production Research, ISSN 0020-7543, E-ISSN 1366-588X, Vol. 42, no 16, p. 3119-3137Article in journal (Refereed) Published
Abstract [en]

An idea about how to tackle and solve the difficult problem of determining economic order quantities in capacity-constrained multilevel production is presented. The idea is based on frequencies during a variable time interval as variables instead of explicit order quantities. The presented heuristic model handles assumed constant demand for several items and calculates fixed-order quantities assumed to be possible to repeat in a cyclic pattern. In the model, every item is supposed to be manufactured at least once per year, or during another maximum period, to stop order quantities that are too large and therefore hinder inventories that are exceedingly large and/or obsolete. During a time interval, it was decided how many times each item should be produced. The paper starts with a common frequency for all items, i.e. the highest frequency possible for all items during this maximum time interval considering the capacity restrictions of the different machines. Thereafter, the frequency for items with high set-up costs compared with the inventory holding costs is reduced if it decreases the total cost of set-ups and inventory holding. Only frequencies in multiples of two are used to make a cycle policy easier to establish, to prevent remnant stocks and to make the used cost approximation fit more accurately.

Place, publisher, year, edition, pages
2004. Vol. 42, no 16, p. 3119-3137
National Category
Production Engineering, Human Work Science and Ergonomics
Research subject
Industrial Logistics
Identifiers
URN: urn:nbn:se:ltu:diva-3140DOI: 10.1080/00207540410001691901ISI: 000222899800001Scopus ID: 2-s2.0-3142688494Local ID: 0ed97a40-764b-11db-962b-000ea68e967bOAI: oai:DiVA.org:ltu-3140DiVA, id: diva2:975996
Note
Validerad; 2004; 20061117 (ysko)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-07-10Bibliographically approved

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Segerstedt, Anders

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  • apa
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