Abstract
A number of models have been proposed to predict optimal setup times, or optimal investment in setup reduction, in manufacturing cells. These have been based on the economic order quantity (EOQ) or economic production quantity (EPQ) model formulation, and have a common limitation in that they neglect work-in-process (WIP) inventories, which can be substantial in manufacturing systems. In this paper a new model is developed that predicts optimal production batch sizes and investments in setup reduction. This model is based on queuing theory, which permits it to estimate WIP levels as a function of the decisions variables, batch size and setup time. Optimal values for batch size and setup time are found analytically, even though the total cost model was shown to be strictly non-convex.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 128-141 |
| Number of pages | 14 |
| Journal | European Journal of Operational Research |
| Volume | 135 |
| Issue number | 1 |
| DOIs | |
| State | Published - Nov 16 2001 |
| Externally published | Yes |
Fingerprint
Keywords
- Inventory
- Lot sizing
- Manufacturing
- Queuing
- Setup time reduction
ASJC Scopus subject areas
- Information Systems and Management
- Management Science and Operations Research
- Statistics, Probability and Uncertainty
- Applied Mathematics
- Modeling and Simulation
- Transportation
Cite this
Optimal investment in setup reduction in manufacturing systems with WIP inventories. / Nye, T. J.; Jewkes, E. M.; Dilts, David.
In: European Journal of Operational Research, Vol. 135, No. 1, 16.11.2001, p. 128-141.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Optimal investment in setup reduction in manufacturing systems with WIP inventories
AU - Nye, T. J.
AU - Jewkes, E. M.
AU - Dilts, David
PY - 2001/11/16
Y1 - 2001/11/16
N2 - A number of models have been proposed to predict optimal setup times, or optimal investment in setup reduction, in manufacturing cells. These have been based on the economic order quantity (EOQ) or economic production quantity (EPQ) model formulation, and have a common limitation in that they neglect work-in-process (WIP) inventories, which can be substantial in manufacturing systems. In this paper a new model is developed that predicts optimal production batch sizes and investments in setup reduction. This model is based on queuing theory, which permits it to estimate WIP levels as a function of the decisions variables, batch size and setup time. Optimal values for batch size and setup time are found analytically, even though the total cost model was shown to be strictly non-convex.
AB - A number of models have been proposed to predict optimal setup times, or optimal investment in setup reduction, in manufacturing cells. These have been based on the economic order quantity (EOQ) or economic production quantity (EPQ) model formulation, and have a common limitation in that they neglect work-in-process (WIP) inventories, which can be substantial in manufacturing systems. In this paper a new model is developed that predicts optimal production batch sizes and investments in setup reduction. This model is based on queuing theory, which permits it to estimate WIP levels as a function of the decisions variables, batch size and setup time. Optimal values for batch size and setup time are found analytically, even though the total cost model was shown to be strictly non-convex.
KW - Inventory
KW - Lot sizing
KW - Manufacturing
KW - Queuing
KW - Setup time reduction
UR - http://www.scopus.com/inward/record.url?scp=0035900288&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0035900288&partnerID=8YFLogxK
U2 - 10.1016/S0377-2217(00)00308-8
DO - 10.1016/S0377-2217(00)00308-8
M3 - Article
VL - 135
SP - 128
EP - 141
JO - European Journal of Operational Research
JF - European Journal of Operational Research
SN - 0377-2217
IS - 1
ER -