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Batch size optimization based on production part cost

In English

Författare

Redaktör

  • F. Frank Chen

Summary, in English

When investigating different location and/or system designs the possible variables to take into consideration can differs between the alternatives. Different production system will have different optimal working conditions and hence should be compared with parameters suitable for the actual production system. When planning production and calculating production costs the batch size is of high interest. Based on a manufacturing part cost model, this paper will present a new model, close connected to the production system, integrating production performance, set-up times, material costs, material handling costs and tied capital, giving the production economic optimal batch size. The aim is to give companies a model for determining the economic optimal batch size in order to use this knowledge to make strategic decisions regarding production planning. Mathematical simulations are performed to analyse the differences in result from the developed model and Wilsons existing standard method for calculating the economic order quantity, hence to verify the importance of making an in-depth analysis, taking the production system into consideration. The advantage of the developed model is the usage of production costs based on variable batch sizes, giving a more accurate outcome.

Publiceringsår

2014

Språk

Engelska

Sidor

1031-1038

Publikation/Tidskrift/Serie

FAIM 2014 - Proceedings of the 24th International Conference on Flexible Automation and Intelligent Manufacturing: Capturing Competitive Advantage via Advanced Manufacturing and Enterprise Transformation

Dokumenttyp

Konferensbidrag

Förlag

DEStech Publications

Ämne

  • Materials Engineering

Nyckelord

  • Batch size
  • optimal economic batch size
  • production part costs

Status

Published

ISBN/ISSN/Övrigt

  • ISBN: 978-1-60595-173-7