An EPQ Model with Unit Production Cost and Set-Up Cost as Functions of Production Rate. (12th September 2013)

• Record Type: Journal Article
• Authors: Afshar-Nadjafi, Behrouz
• Other Names: Chan Hing Kai Academic Editor.
• Is Part Of: Modelling and simulation in engineering. Volume 2013(2013)
• Publication Date: 2013-09-12
• Subjects: Engineering -- Simulation methods -- Periodicals; Engineering -- Mathematical models -- Periodicals; 620.004
• DOI: 10.1155/2013/727685
• Languages: English
• ISSNs: 1687-5591

Abstract

Abstract : Extensive research has been devoted to economic production quantity (EPQ) problem. However, no attention has been paid to problems where unit production and set-up costs must be considered as functions of production rate. In this paper, we address the problem of determining the optimal production quantity and rate of production in which unit production and set-up costs are assumed to be continuous functions of production rate. Based on the traditional economic production quantity (EPQ) formula, the cost function associated with this model is proved to be nonconvex and a procedure is proposed to solve this problem. Finally, utility of the model is presented using some numerical examples and the results are analyzed.