Journal of Applied Mathematics and Decision Sciences
Volume 6 (2002), Issue 2, Pages 71-78
A finite horizon production model with variable production rates
and constant demand rate
Department of Information Systems and Decision Science, College of Business and Economics, California State University, Fullerton 92834, CA, USA
Copyright © 2002 Zvi Goldstein. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
In this paper we present a finite horizon single product single machine
production problem. Demand rate and all the cost patterns do not change over time.
However, end of horizon effects may require production rate adjustments at the beginning
of each cycle. It is found that no such adjustments are required. The machine should
be operated either at minimum speed (i.e. production rate = demand rate; shortage is
not allowed), avoiding the buildup of any inventory, or at maximum speed, building up
maximum inventories that are controlled by the optimal production lot size.