Optimal trade credit and lot size policies in economic production quantity models with learning curve production costs

2014 ◽  
Vol 155 ◽  
pp. 318-323 ◽  
Author(s):  
Jinn-Tsair Teng ◽  
Kuo-Ren Lou ◽  
Lu Wang
2016 ◽  
Vol 15 (1) ◽  
pp. 78 ◽  
Author(s):  
Nurike Oktavia ◽  
Henmaidi Henmaidi ◽  
Jonrinaldi Jonrinaldi

The most popular inventory model to determine production lot size is Economic Production Quantity (EPQ). It shows enterprise how to minimize total production cost by reducing inventory cost. But, three main parameters in EPQ which are demand, machine set up cost, and holding cost, are not suitable to solve issues nowadays. When an enterprise has two types of demand, continue and discrete demand, the basic EPQ would be no longer useful. Demand continues comes from a customer who wants their needs to be fulfilled every time per unit time, while the fulfillment of demand discrete is at a fixed interval of time. A literature review is done by writers to observe other formulation of EPQ model. As there is no other research can be found which adopt this topic, this study tries to develop EPQ model considering two types of demand simultaneously.


Author(s):  
Terrence J. Moran ◽  
Marvin Troutt

<h1 style="page-break-after: auto; text-align: justify; line-height: normal; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="color: black; font-size: 10pt; font-weight: normal;"><span style="font-family: Times New Roman;">The Setup time variable was evaluated for the two systems (Kanban and EPQ) against the performance measure of total completion time.<span style="mso-spacerun: yes;">&nbsp; </span>EPQ outperforms Kanban on total completion time.<span style="mso-spacerun: yes;">&nbsp; </span>The research helped clarify for practitioners whether EPQ might be more suitable than Kanban for their given situations.<span style="mso-spacerun: yes;">&nbsp; </span></span></span></h1>


Author(s):  
Arindum Mukhopadhyay ◽  
Adrijit Goswami

Imperfect quality Items are unavoidable in an Inventory system due to imperfect productionprocess, natural disasters, damages, or many other reasons. The setup cost and production cycletime can be related in terms of process deterioration and learning and forgetting effects. Learningreduces production run length and setup cost, whereas deterioration and forgetting increases both.Keeping these facts in mind, this paper investigates an Economic Production Quantity (EPQ) modelwith imperfect quality items with varying set-up costs. Mathematical model and solution proceduresare developed with major insight to its charecteristics. Numerical example and sensitivity analysisare provided to illustrate and analyze the model performance. It is observed that our model has asignificant impacts on the optimal lot size and optimal profit of the model.Classication: 90B05


Author(s):  
Terrence J. Moran ◽  
Kevin Brayer

The Setup time variable was evaluated for the two systems (Kanban and EPQ) against the performance measure of annual setup cost. EPQ outperforms Kanban onsetup cost. The research helped clarify for practitioners whether EPQ might be more suitable than Kanban for their given situations.


Author(s):  
Brojeswar Pal ◽  
Subhankar Adhikari

In this paper, we have developed an economic production quantity (EPQ) model in which production is executed mainly by the original machine. But when the system faces disruption, the buffer of it continues the production. Here, we incorporate a fixed Safe Period running policy, in which the machine runs interruptedly, whenever production commences.  The disruption of the system may occur at any moment of the time horizon over the safe period, and then, it will go under the corrective maintenance policy. Here, we take that both of the time of disruption and period of maintenance are continuous random variables. We have discussed the model under different safe period duration with corresponding disruption situations. Our main objective is to minimize the expected average total cost for all the cases concerning the production lot size. The model has also been illustrated numerically with some examples. To examine the robustness of the solution of this model, we discuss the sensitivity analysis for the parameters.


Author(s):  
Nurike Oktavia ◽  
Henmaidi Henmaidi ◽  
Prima Fithri

Inventory of finished goods needs to be planned and controlled regularly. Fulfilling customer demand whenever and wherever is the main purpose of the supply. This issue is related to production activities. Many companies use the Economic Production Quantity (EPQ) Model in determining the size of their lot productions. This model is able to show how to minimize total production costs by reducing inventory costs. Customer behavior at PT XYZ makes product delivery divided into 2 types. The first type, finished goods is sent continuously in small amounts called continue demand. The second type, products is sent between certain time intervals in large quantities called discrete demand. Basic EPQ Model’s parameters do not accommodate a system like this. In addition, PT XYZ requires rework for products that do not pass the quality test. Therefore, this research was developed to formulate EPQ model that can accommodate two types of demand, continue and discrete, as well as the existence of rework policy. This study tries to provide another approach in solving the derivation problem using the "Arithmetic-Geometric Mean" method. The results of this study will display a mathematical formulation to find the optimal production cycle time for PT XYZ. Numerical examples are discussed to show practical models.


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