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Lot Sizes in Serial Manufacturing with Random Yields

Published online by Cambridge University Press:  27 July 2009

Matthew J. Sobel
Matthew J. Sobel
Affiliation:
W. A. Harriman School for Management & Policy, SUNY Stony Brook, Stony Brook, New York 11794-3775
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Abstract

In a job-shop manufacturing environment, consider a model in which the “job” is processed at several stages with random yields. Nondefective items move through the stages to supply a possibly random demand. At each stage there are linear costs of processing and work-in-process inventories and there are convex costs of end-item inventory. Decisions specify the lot sizes that are processed at the various stages. Easy computations specify a simply structured decision rule that minimizes the expected total cost.

Information

Type
Research Article
Information
Probability in the Engineering and Informational Sciences , Volume 9 , Issue 1 , January 1995 , pp. 151 - 157
Copyright
Copyright © Cambridge University Press 1995

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