(An) approach for the optimal production rate of a single product system with dynamic demands

Abstract

This work is concerned with a decision in production management problems, especially the determination of a production system capacity, given the forecasted dynamic demands. Up to now, most researches have dealt with the production scheduling with the allowance of the period-wise different production quantity. But in this thesis, production at a fixed rate through a time horizon is considered from the standpoint of the optimal utilization of the system and the cost incurred from production changes and above all, the initial investment for the production system. A total revenue model through the time-horizon is developed and both cases of lost-sales and backlogging are treated individually. Optimal solution search methods are developed in linear programming and point-wise computation approaches. The efficiency of the point-wise computation approach, suggested as an enumerative procedure, is shown in comparision with the other approach in terms of computing time on computer.