EPQ models with varying setup cost
In this paper, the classical economic production quantity (EPQ) model is generalized by considering a relationship between the setup cost and the production run length. The dependency between the setup cost and run length can be related to process deterioration and learning and forgetting effects. Two models are developed, the first of which is for the case when shortages are not allowed and the other one permits shortages. The cost functions associated with these models are proved to be convex and optimal solutions are determined. Results show that the relationship between setup cost and production run length has a significant impact on the optimal lot size and average total cost in the EPQ model. Numerical examples are presented to demonstrate the utility of the models.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Willard I. Zangwill, 1987. "From EOQ Towards ZI," Management Science, INFORMS, vol. 33(10), pages 1209-1223, October.
- Darwish, M.A. & Ben-Daya, M., 2007. "Effect of inspection errors and preventive maintenance on a two-stage production inventory system," International Journal of Production Economics, Elsevier, vol. 107(1), pages 301-313, May.
- Yang, Jiaqin & Deane, Richard H., 1993. "Setup time reduction and competitive advantage in a closed manufacturing cell," European Journal of Operational Research, Elsevier, vol. 69(3), pages 413-423, September.
- Anne M. Spence & Evan L. Porteus, 1987. "Setup Reduction and Increased Effective Capacity," Management Science, INFORMS, vol. 33(10), pages 1291-1301, October.
- Freimer, Michael & Thomas, Douglas & Tyworth, John, 2006. "The value of setup cost reduction and process improvement for the economic production quantity model with defects," European Journal of Operational Research, Elsevier, vol. 173(1), pages 241-251, August.
- Jaber, Mohamad Y. & Bonney, Maurice, 2003. "Lot sizing with learning and forgetting in set-ups and in product quality," International Journal of Production Economics, Elsevier, vol. 83(1), pages 95-111, January.
- Evan L. Porteus, 1985. "Investing in Reduced Setups in the EOQ Model," Management Science, INFORMS, vol. 31(8), pages 998-1010, August.
- Jaber, Mohamad Y. & Bonney, Maurice, 1999. "The economic manufacture/order quantity (EMQ/EOQ) and the learning curve: Past, present, and future," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 93-102, March.
- John P. Leschke & Elliott N. Weiss, 1997. "The Multi-Item Setup-Reduction Investment-Allocation Problem with Continuous Investment-Cost Functions," Management Science, INFORMS, vol. 43(6), pages 890-894, June.
- Salameh, M. K. & Jaber, M. Y., 2000. "Economic production quantity model for items with imperfect quality," International Journal of Production Economics, Elsevier, vol. 64(1-3), pages 59-64, March.
When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:113:y:2008:i:1:p:297-306. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.