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Economic lot scheduling of fully loaded processes with external setups

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  • Robert R. Inman
  • Philip C. Jones
  • Guillermo M. Gallego

Abstract

Without restricting the class of permissible schedules, we derive optimal schedules for economic lot scheduling problems that are fully loaded, have external setups, and have only two products. The fully loaded condition accurately represents certain types of bottlenecks. We show that the optimal schedule must have the Wagner‐Whitin property. We also develop a measure of aggregate inventory, derive an optimal steady‐state aggregate inventory policy, and provide conditions under which the aggregate inventory level of an optimal schedule must approach a steady state. By restricting the class of permissible schedules to rotation cycle schedules, we extend these results to more than two products.

Suggested Citation

  • Robert R. Inman & Philip C. Jones & Guillermo M. Gallego, 1991. "Economic lot scheduling of fully loaded processes with external setups," Naval Research Logistics (NRL), John Wiley & Sons, vol. 38(5), pages 699-713, October.
    • Handle: RePEc:wly:navres:v:38:y:1991:i:5:p:699-713
    DOI: 10.1002/1520-6750(199110)38:53.0.CO;2-J
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    References listed on IDEAS

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    1. Park, Chan S. & Son, Young K., 1989. "The effect of discounting on inventory lot sizing models," Engineering Costs and Production Economics, Elsevier, vol. 16(1), pages 35-48, February.
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    Cited by:

    1. Arreola-Risa, Antonio, 1996. "Integrated multi-item production-inventory systems," European Journal of Operational Research, Elsevier, vol. 89(2), pages 326-340, March.

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