International Journal of
Physical Sciences

  • Abbreviation: Int. J. Phys. Sci.
  • Language: English
  • ISSN: 1992-1950
  • DOI: 10.5897/IJPS
  • Start Year: 2006
  • Published Articles: 2569

Full Length Research Paper

Alternative approach for production lot size problem with scrap and cost reduction distribution policy

Fan-Yun Pai1 and Chia-Kuan Ting2*
  1Department of Business Administration, National Changhua University of Education, Changhua 500, Taiwan. 2Department of Industrial Engineering and Management, Chaoyang University of Technology Wufong, Taichung 413, Taiwan.
Email: [email protected]

  •  Accepted: 10 January 2011
  •  Published: 04 February 2011

Abstract

 

Conventional approach for solving replenishment lot size problem is by using the differential calculus with the need of applying the first-order and second-order differentiations to the long-run average production-inventory cost. A recent published paper used conventional method to determine optimal lot size for an integrated production-delivery system with scrap and cost lessening distribution policy. This paper uses an alternative algebraic approach to reexamine the aforementioned problem without referring to derivatives. As a result, optimal lot size and a simpler expression for the long-run average cost are derived, and they are identical to what were obtained by using the conventional method.

 

Key words: Lot size, optimization, scrap, multiple distribution policy, algebraic approach, production planning.