Like this presentation? Why not share!

# Single Facility Lot Size Model Elsp

## on Feb 10, 2010

• 1,277 views

### Views

Total Views
1,277
Views on SlideShare
1,277
Embed Views
0

Likes
0
Downloads
7
Comments
0

No embeds

### Upload Details

Uploaded via as Microsoft PowerPoint

### Usage Rights

© All Rights Reserved

### Report content

• Comment goes here.
Are you sure you want to
Your message goes here
Edit your comment

## Single Facility Lot Size Model ElspPresentation Transcript

• Single Facility Lot Size Model Producing n items on a single machine
• Notation
• λ j : Demand rate for product j
• P j : Production rate for product j
• h j : holding cost per unit per unit time for product j
• K j : Set up cost for product j
• Facility should have enough capacity to satisfy the demand of all products
•
• Example data 20 0.003 80 10,000 1000 D 5 0.005 120 50,000 5000 C 15 0.002 70 5,000 2000 B 10 0.001 50 10,000 3000 A Variable cost/unit Setup time Setup cost Production rate Annual demand Product
• Optimal Solution
• T min = Σ s j /(1- Σ ( λ j /P j ) = 0.011/0.10 = 0.11 years
• T* =((2)(320)/15,900)^0.5=0.20
• Since T*> T min cycle length = 0.20 years
• Q 1 =T* λ 1 =0.20 x 3000 = 600
• Q 2 =T* λ 2 =0.20 x 2000 = 400
• Q 3 =T* λ 3 =0.20 x 5000 = 1000
• Q 4 =T* λ 4 =0.20 x 1000 = 200
• Cost = 108,190