The effects of varying set‐up costs
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 1 March 1996
Abstract
The concept of zero inventory (ZI) is a powerful tool to improve production economics. The major factor in ZI is set‐up cost reduction. Examines what will happen when set‐up costs are stationarily and non‐stationarily reduced by mathematical presentations and simulation. The results are useful for real practice. Zangwill observes that reducing set‐up costs need not decrease inventory by a special example of non‐stationary cases. Likewise, set‐up cost reduction need not decrease total production and inventory costs. By using simulation, obtains results contrary to Zangwill. Most presentations of set‐up cost reduction consider the stationary case. It is hard to find the degree of cost variations by mathematical models. Thus uses a mathematical approach and a few simulation results that varying set‐up costs are provided. Reduces set‐up costs stationarily and non‐stationarily to examine the effects on total costs and total holding costs.
Keywords
Citation
Chyr, F. (1996), "The effects of varying set‐up costs", International Journal of Operations & Production Management, Vol. 16 No. 3, pp. 87-96. https://doi.org/10.1108/01443579610110512
Publisher
:MCB UP Ltd
Copyright © 1996, MCB UP Limited