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Determination of Economic Production Policy with Dynamic Demand and Production Capacity Constraint

  • S. K. Goyal
  • E. H. Mahmoud
Conference paper

Abstract

This paper addresses the issue of determining economic production policy for a product having time varying demand. The capacity of the production system is restricted. However, a limited number of items can be produced on overtime. The objective is to minimize the total cost of the system. The model permits the integration of both production and forecasting for planning and control. It takes into account the adjustment in production policy necessary when demand forecast errors result in shortages or surpluses.

Keywords

Production Quantity Demand Forecast Actual Demand Dynamic Demand Stock Holding 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. (1).
    Peterson, R and Silver, E.A., Decision Systems for Inventory Management and Production Planning (John Wiley amp Sons, 1979 ).Google Scholar
  2. (2).
    Silver, E.A. and Meal, H.C., A Heuristic for Selecting Lot Size Requirements for the Case of a Deterministic Time-Varying Demand Rate and Discrete Opportunities for Replenishment, Production and Inventory Management 14 (1973) 64–74.Google Scholar
  3. (3).
    Wagner, H.M. and Whitin, T.M., Dynamic Version of the Economic Lot Size Model, Management Science 5 (1958) 89–96CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 1985

Authors and Affiliations

  • S. K. Goyal
    • 1
    • 2
  • E. H. Mahmoud
    • 1
    • 2
  1. 1.Concordia UniversityMontrealCanada
  2. 2.University of MichiganFlintUSA

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