| Author(s) | Khalid A. Aldakhilallah |
| Affiliation | Department of Quantitative Methods, College of Administrative Sciences, King Saud University, P.O. Box 2459, Riyadh 11451, E-mail: khlidasd@ksu.edu.sa |
| Title | Optimal Production Run Size for a Multistage |
| Source | Journal of King Saud University. Administrative Sciences. Volume 19, No 1. (2007/1427) |
| Abstract | In this paper, a mathematical model is presented to determine the optimal production run size and the corresponding optimal ordering quantity of raw material for a multistage manufacturing system. The optimal production run size and the optimal order quantity of raw material are determined simultaneously by incorporating the cost of holding WIP inventory, production setup cost, and the classical EOQ model for ordering raw material. In determining the optimal production run size, we have analyzed the average WIP inventory for two scenarios. In the first scenario, it is assumed that the last work station begins production before the first work station completes the production of all batches. On the other hand, the second scenario states that the first work station completes the production of all batches before the last work station begins production. By incorporating the cost of holding WIP inventory, production setup cost, and the classical EOQ model for ordering raw material, a more realistic total production cost function is achieved which leads to a better batch size and raw material ordering quantity. Keywords: Work-in-process, Buffer size, Production run size, EOQ. |
