A class of production planning problems is considered in which known demands have to be satisfied over a finite horizon at minimum total costs. For each period, production and storage cost functions are specified. The production costs may include set-up costs and the production levels may he...

Monahan (Monahan, James P. 1984. A quantity discount pricing model to increase vendor profits. Management Sci. 30 (June) 720--726.) develops a model for establishing an optimal quantity discount schedule from a vendor's viewpoint. In this note we show that this model is limited to the case where...

Previous work dealt with the problems of nervousness in Material Requirements Planning (MRP) Systems when production schedules were modified to include setups which previously had not been scheduled. In this work we further examine nervousness and its cost. By modifying the setup costs used in...

Component lot-splitting considerations, in which the lot-size of a component item may cover only a fraction of its parent item's lot-size, have been ignored in the literature when determining lot-sizes of items in multi-stage manufacturing systems. In this paper, a multi-stage lot-sizing problem...

This paper deals with the classical dynamic lot size problem without backlogging and capacity limitation. We derive worst case performance bounds for a class of lot sizing heuristics. When the considered methods are applied a decision whether to have a set-up or not in a certain period is taken...

In this paper we present a mathematical programming model for the Kanban system in a deterministic multi-stage capacitated assembly-tree-structure production setting. We discuss solution procedures to the problem and address three special cases of practical interest.

This paper develops optimal order quantities for firms that are offered a one-time opportunity to delay payment for an order of a commodity. Such delayed payments result in a reduction of the effective purchase cost, which is a function of the return available on alternative investments, the...

The multi-item joint replenishment problem is generalized to allow ordering costs to be dependent on the specific items jointly supplied. A fixed cycle approach is examined in which all the items of a group are always jointly replenished. A dynamic programming algorithm is developed for...

We consider the situation of a single item having a deterministic, time-varying demand pattern. Production lot sizes, so as to minimize the total of setup and carrying costs, are to be determined subject to production capacity restrictions that can vary with time. Two important theorems...

In this paper, we analyze how a supplier can structure the terms of an optimal quantity discount schedule. The vendor's challenge is to adjust his present pricing schedule to entice his major customer to increase his present order size by a factor of "K." Optimal levels for "K" and the...