This paper presents a case study conducted at a rayon-yarn plant. (For commercial reasons, the identity of the company is concealed.) This study deals with the economic lot-sizing problem in a multi-stage, multi-facility and multi-product production-inventory system. The multi-level lot-sizing model suggested by Gunasekaran et al. (1990a) is used for the application. The application of the model helped to reduce the set-up and in-process inventory carrying costs. The consequences of implementing economic batch sizes obtained from the model are presented and compared with present practice.
All Science Journal Classification (ASJC) codes
- Computer Science(all)
- Modeling and Simulation
- Management Science and Operations Research
- Information Systems and Management