computational optimization of manufacturing batch size and shipment for an integrated epq model with scrap计算优化的生产批量大小和装运一个集成的epq模型与报废.pdfVIP

American Journal of Computational Mathematics, 2011, 1, 202-207 doi:10.4236/ajcm.2011.13023 Published Online September 2011 (http://www.SciRP.org/journal/ajcm) Computational Optimization of Manufacturing Batch Size and Shipment for an Integrated EPQ Model with Scrap 1 1 2 3 Yuan-Shyi Peter Chiu , Hong-Dar Lin , Ming-Hon Hwang *, Nong Pan 1 Department of Industrial Engineering Management, Chaoyang University of Technology, Taichung, Chinese Taipei 2Department of Marketing and Logistics Management, Chaoyang University of Technology, Taichung, Chinese Taipei 3Department of Business Administration, Chaoyang University of Technology, Taichung, Chinese Taipei * E-mail : hwangmh@.tw Received March 12, 2011; revised April 2, 2011; accepted April 28, 2011 Abstract This paper employs mathematical modeling and algebraic approach to derive the optimal manufacturing batch size and number of shipment for a vendor-buyer integrated economic production quantity (EPQ) model with scrap. Unlike the conventional method by using differential calculus to determine replenishment lot size and optimal number of shipments for such an integrated system, this paper proposes a straightforward alge- braic approach to replace the use of calculus on the total cost function for solving the optimal production- shipment policies. A simpler form for computing long-run average cost for such a vendor-buyer integrated EPQ problem is also provided. Keywords: Computational Optimization, Manufacturing Batch Size, Shipments, EPQ Model, Random Scrap Rate, Algebraic Approach 1. Introduction