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.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Peterson, R and Silver, E.A., Decision Systems for Inventory Management and Production Planning (John Wiley amp Sons, 1979 ).
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.
Wagner, H.M. and Whitin, T.M., Dynamic Version of the Economic Lot Size Model, Management Science 5 (1958) 89–96
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1985 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Goyal, S.K., Mahmoud, E.H. (1985). Determination of Economic Production Policy with Dynamic Demand and Production Capacity Constraint. In: Bullinger, HJ., Warnecke, H.J. (eds) Toward the Factory of the Future. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-82580-4_114
Download citation
DOI: https://doi.org/10.1007/978-3-642-82580-4_114
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-82582-8
Online ISBN: 978-3-642-82580-4
eBook Packages: Springer Book Archive