In this paper an economic production quantity (EPQ) model in which the production rate is variable is studied. An analysis is presented of the impact of a variable production rale on the optimal production quantity and the total relevant cost. It is observed that this EPQ production and inventory system, in which the production rate is close to the demand rate, possesses many characteristics that are similar to a just-in-time (JIT) production system. It is shown that the normal prerequisites and benefits of JIT production can be identified from an analysis of such an EPQ system.
ASJC Scopus subject areas
- Computer Science Applications
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering