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Investment policy for multiple product setup reduction under budgetary and capacity constraints
Journal article   Peer reviewed

Investment policy for multiple product setup reduction under budgetary and capacity constraints

Avijit Banerjee, Vijay R Pyreddy and Seung Lae Kim
International journal of production economics, v 45(1), pp 321-327
1996
DOI: https://doi.org/10.1016/0925-5273(95)00122-0
Featured in Collection :   UN Sustainable Development Goals @ Drexel

Abstract

Inventory models Multiproduct lot sizing Setup reduction
This paper investigates the impact of setup cost and time reduction on production batch sizes and the schedule in a batch manufacturing system, producing multiple products. It is assumed that the system's operating environment is deterministic and there are budgetary and capacity constraints. The schedule feasibility of the embedded economic lot scheduling problem is attained by using the common cycle approach. The extent of setup reduction attained is treated as a function of capital investment in technology. The problem of simultaneously determining the lot sizes, as well as the investments made in setup reduction for the different products, with the objective of minimizing the total relevant cost, is formulated as a non-linear, constrained optimization model. A solution algorithm using the generalized Lagrangian approach is developed to solve this problem. A heuristic approach is also suggested for cases where the optimization procedure becomes computationally cumbersome. The concepts developed are illustrated through a numerical example.

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4 Record Views
9 citations in Web of Science
12 citations in Scopus

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UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#12 Responsible Consumption & Production

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Web of Science research areas
Engineering, Industrial
Engineering, Manufacturing
Operations Research & Management Science
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