Abstract

In certain cases the capacity restrictions are not very important, for instance if the products have to be put into a chemical bath and the size of the bath is much larger than the average batch that is produced. It is also possible that the extra costs for working overtime or extra capacity are very small compared to the set-up costs. Also in practical situations in which there are capacity restrictions it can be wise to at first ignore these restrictions in order to get some insight into the other problems. We have assumed that raw material is always available. Therefore, the only way in which the production planning of different product types is related, is through the capacity restrictions. If these restrictions are rather unimportant, it is not necessary to consider all product types together, but the product types can be considered separately in order to analyse the problem. In this chapter, we will consider the production planning for a single type of product, where the problem of our interest is the balance between a limited number of set-ups and short delivery times or a limited number of late orders.KeywordsLead TimeOptimal PolicyProduction RuleAverage CostPenalty CostThese 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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