Optimal reject allowance with constant marginal production efficiency

Wiley - Tập 24 Số 1 - Trang 21-33 - 1977
Avraham Beja1
1The Leon Recanati Graduate School of Business Administration, Tel Aviv University, Tel Aviv, Israel

Tóm tắt

AbstractA job shop must fulfill an order for N good items. Production is conducted in “lots,” and the number of good items in a lot can be accurately determined only after production of that lot is completed. If the number of good items falls short of the outstanding order, the shop must produce further lots, as necessary.Processes with “constant marginal production efficiency” are investigated. The revealed structure allows efficient exact computation of optimal policy. The resulting minimal cost exhibits a consistent (but not universal) pattern whereby higher quality of production is advantageous even at proportionately higher marginal cost.

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Tài liệu tham khảo

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Wiley

Tập 24 Số 1

21-33

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