Joint Optimal Production-Delivery Policy for Multiple Products with a Single Production Facility

  • Kim Taebok (Division of Mechanical & Industrial Engineering Pohang University of Science and Technology) ;
  • Hong Yushin (Division of Mechanical & Industrial Engineering Pohang University of Science and Technology)
  • Published : 2003.05.01

Abstract

The synchronization of production-delivery artivities is one of crucial factors to get competitive collaboration benefits between the manufacturer and the retailor(s). There were several researches to study on He optimal delivery policy to minimize the total cost of integrated system of both manufacturer and retailor(s). In this research, we investigate the joint optimal shipment policy in case that a manufacturer produces multiple products sharing a single production facility in the manufacturer side and retailor(s) deploys JIT delivery pattern with equal-size shipment policy. We formulate this problem as a form of 'Common Cycle Approach' in classical ELSP (Economic Lot Scheduling Problem) and provide simple optimal solution procedure.

Keywords