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

Abstract

A 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

10.1214/aoms/1177704593

Bowman E. H., 1960, Analysis for Production Management, 324

Goode H. P. andS.Saltzman “Computing Optimum Shrinkage Allowances for Small Order Sizes ” The Journal of Industrial Engineering 57–61(January‐February 1961).

Gregory W. R. andA.Beged‐Dov “On the Determination of Optimal Shrinkage Allowance in a Job Shop ” The Journal of Industrial Engineering (April 1967).

Hillier F. S. “Reject Allowances for Job Lot Orders ” The Journal of Industrial Engineering 311–316(November‐December 1963).

Howard R. A., 1960, Dynamic Programming and Markov Processes

10.1287/mnsc.6.2.172

Llewellyn R. W. “Order Sizes for Job Lot Manufacturing ” The Journal of Industrial Engineering 176–180(May‐June 1959).

Wadsworth H. M. andS. H.Chang “The Reject Allowance Problem: An Analysis and Application to Job Lot Production ” The Journal of Industrial Engineering 127–132(May‐June 1964).

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Wiley

Tập 24 Số 1

21-33

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