THE INTEGRATED PRODUCTION INVENTORY MODEL WITH A POWERS-OF-2 RESTRICTION

Abstract

This paper investigates an efficient way of solving an integrated production inventory model by assuming that the constant scheduling intervals are powers-of-two multiples of some base planning period. A simple procedure is presented to find an optimal or near optimal inventory policy which minimizes the total variable system cost per unit time. The validity of the procedure is evaluated through 400 randomly generated test problems.