Optimal investment in setup reduction in manufacturing systems with WIP inventories

T. J. Nye, E. M. Jewkes, David Dilts

Research output: Contribution to journalArticle

14 Citations (Scopus)

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 languageEnglish (US)
Pages (from-to)128-141
Number of pages14
JournalEuropean Journal of Operational Research
Volume135
Issue number1
DOIs
StatePublished - Nov 16 2001
Externally publishedYes

Fingerprint

Optimal Investment
Setup Times
manufacturing
Batch
Economic Order Quantity
Queuing Theory
Predict
Cost Model
Cellular manufacturing
Economics
Model
Strictly
Manufacturing
economics
neglect
Setup reduction
Manufacturing systems
Optimal investment
Formulation
Cell

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 journalArticle

Nye, T. J. ; Jewkes, E. M. ; Dilts, David. / Optimal investment in setup reduction in manufacturing systems with WIP inventories. In: European Journal of Operational Research. 2001 ; Vol. 135, No. 1. pp. 128-141.
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