Journal of Applied Mathematics and Decision Sciences
Volume 6 (2002), Issue 2, Pages 71-78
doi:10.1155/S1173912602000056
Abstract
In this paper we present a finite horizon single product single machine
production problem. Demand rate and all the cost patterns do not change over time.
However, end of horizon effects may require production rate adjustments at the beginning
of each cycle. It is found that no such adjustments are required. The machine should
be operated either at minimum speed (i.e. production rate = demand rate; shortage is
not allowed), avoiding the buildup of any inventory, or at maximum speed, building up
maximum inventories that are controlled by the optimal production lot size.