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Setup cost reduction in a multi-stage order quantity model

  • A. Andijani*
  • *Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

In this paper, a single item, multi-stage serial order quantity (MSOQ) model with constant demand is discussed. The objective of the model is to minimize the total cost which includes the setup cost and the inventory holding cost. This paper examines and analyses the investment in a one-time cost to reduce the (current) setup level and adds a per unit item amortization of this cost to the other costs associated with the MSOQ model. We consider the setup cost to be decreased on each stage with the same rate and the cost of the joint setup cost reduction is a logarithmic cost function.

Original languageEnglish
Pages (from-to)121-126
Number of pages6
JournalProduction Planning and Control
Volume9
Issue number2
DOIs
StatePublished - 1 Jan 1998

Bibliographical note

Funding Information:
The author gratefully acknowledges the support provided by the Department of Systems Engineering, King Fahd University of Petroleum & Minerals ( KFUPM) , Dhahran, Saudi Arabia for conducting this research.

Keywords

  • Inventory
  • Multi-stage
  • Serial lines
  • Setup cost

ASJC Scopus subject areas

  • Computer Science Applications
  • Strategy and Management
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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