IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v121y2009i2p494-504.html
   My bibliography  Save this article

Robustness of a production schedule to inventory cost calculations

Author

Listed:
  • Koltai, Tamás

Abstract

Minimizing the cost of capital tied up by inventory is frequently an important management objective of production scheduling. The paper determines the optimal production schedule of a single machine sequencing problem for two cases; first when the cost of capital is calculated by periodic interest calculation, and second, when the cost of capital is determined by continuously compounded interest calculation. The results are derived for common due date and for different due dates situations as well. The robustness of the suggested production schedules to the method of interest calculation is proved theoretically and demonstrated with the example of a calendar manufacturer.

Suggested Citation

  • Koltai, Tamás, 2009. "Robustness of a production schedule to inventory cost calculations," International Journal of Production Economics, Elsevier, vol. 121(2), pages 494-504, October.
    • Handle: RePEc:eee:proeco:v:121:y:2009:i:2:p:494-504
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(07)00059-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Koltai, Tamas & Terlaky, Tamas, 2000. "The difference between the managerial and mathematical interpretation of sensitivity analysis results in linear programming," International Journal of Production Economics, Elsevier, vol. 65(3), pages 257-274, May.
    2. Kenneth R. Baker & Gary D. Scudder, 1990. "Sequencing with Earliness and Tardiness Penalties: A Review," Operations Research, INFORMS, vol. 38(1), pages 22-36, February.
    3. Kenneth N. McKay & Frank R. Safayeni & John A. Buzacott, 1988. "Job-Shop Scheduling Theory: What Is Relevant?," Interfaces, INFORMS, vol. 18(4), pages 84-90, August.
    4. Borgonovo, E. & Peccati, L., 2004. "Sensitivity analysis in investment project evaluation," International Journal of Production Economics, Elsevier, vol. 90(1), pages 17-25, July.
    5. Borgonovo, E. & Peccati, L., 2006. "Uncertainty and global sensitivity analysis in the evaluation of investment projects," International Journal of Production Economics, Elsevier, vol. 104(1), pages 62-73, November.
    6. A. H. G. Rinnooy Kan & B. J. Lageweg & J. K. Lenstra, 1975. "Minimizing Total Costs in One-Machine Scheduling," Operations Research, INFORMS, vol. 23(5), pages 908-927, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. C N Potts & V A Strusevich, 2009. "Fifty years of scheduling: a survey of milestones," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(1), pages 41-68, May.
    2. Marchioni, Andrea & Magni, Carlo Alberto, 2018. "Investment decisions and sensitivity analysis: NPV-consistency of rates of return," European Journal of Operational Research, Elsevier, vol. 268(1), pages 361-372.
    3. Magni, Carlo Alberto & Marchioni, Andrea, 2020. "Average rates of return, working capital, and NPV-consistency in project appraisal: A sensitivity analysis approach," International Journal of Production Economics, Elsevier, vol. 229(C).
    4. Victor Portougal & David J. Robb, 2000. "Production Scheduling Theory: Just Where Is It Applicable?," Interfaces, INFORMS, vol. 30(6), pages 64-76, December.
    5. George Li, 1997. "Single machine earliness and tardiness scheduling," European Journal of Operational Research, Elsevier, vol. 96(3), pages 546-558, February.
    6. Carlo Alberto Magni & Stefano Malagoli & Andrea Marchioni & Giovanni Mastroleo, 2020. "Rating firms and sensitivity analysis," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 71(12), pages 1940-1958, December.
    7. Lu, Yuehong & Wang, Shengwei & Yan, Chengchu & Shan, Kui, 2015. "Impacts of renewable energy system design inputs on the performance robustness of net zero energy buildings," Energy, Elsevier, vol. 93(P2), pages 1595-1606.
    8. Andrea Marchiioni & Carlo Alberto Magni, 2016. "Sensitivity analysis and investment decisions: NPV-consistency of rates of return," Department of Economics 0089, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    9. Borgonovo, E. & Peccati, L., 2007. "Global sensitivity analysis in inventory management," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 302-313, July.
    10. Magni, Carlo Alberto & Marchioni, Andrea & Baschieri, Davide, 2023. "The Attribution Matrix and the joint use of Finite Change Sensitivity Index and Residual Income for value-based performance measurement," European Journal of Operational Research, Elsevier, vol. 306(2), pages 872-892.
    11. Magni, Carlo Alberto & Marchioni, Andrea, 2019. "Performance measurement and decomposition of value added," MPRA Paper 95258, University Library of Munich, Germany.
    12. Soroush, H. M., 1999. "Sequencing and due-date determination in the stochastic single machine problem with earliness and tardiness costs," European Journal of Operational Research, Elsevier, vol. 113(2), pages 450-468, March.
    13. Borgonovo, E. & Peccati, L., 2006. "The importance of assumptions in investment evaluation," International Journal of Production Economics, Elsevier, vol. 101(2), pages 298-311, June.
    14. Borgonovo, E. & Peccati, L., 2006. "Uncertainty and global sensitivity analysis in the evaluation of investment projects," International Journal of Production Economics, Elsevier, vol. 104(1), pages 62-73, November.
    15. Bogataj, D. & Aver, B. & Bogataj, M., 2016. "Supply chain risk at simultaneous robust perturbations," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 68-78.
    16. Magni, Carlo Alberto, 2015. "Investment, financing and the role of ROA and WACC in value creation," European Journal of Operational Research, Elsevier, vol. 244(3), pages 855-866.
    17. Shabtay, Dvir & Steiner, George & Zhang, Rui, 2016. "Optimal coordination of resource allocation, due date assignment and scheduling decisions," Omega, Elsevier, vol. 65(C), pages 41-54.
    18. Prabuddha De & Jay B. Ghosh & Charles E. Wells, 1994. "Due‐date assignment and early/tardy scheduling on identical parallel machines," Naval Research Logistics (NRL), John Wiley & Sons, vol. 41(1), pages 17-32, February.
    19. X. Cai & F. S. Tu, 1996. "Scheduling jobs with random processing times on a single machine subject to stochastic breakdowns to minimize early‐tardy penalties," Naval Research Logistics (NRL), John Wiley & Sons, vol. 43(8), pages 1127-1146, December.
    20. Ilkyeong Moon & Sanghyup Lee & Moonsoo Shin & Kwangyeol Ryu, 2016. "Evolutionary resource assignment for workload-based production scheduling," Journal of Intelligent Manufacturing, Springer, vol. 27(2), pages 375-388, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:121:y:2009:i:2:p:494-504. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.