General Planning Horizons for Production Smoothing with Deterministic Demands

Howard C. Kunreuther and Thomas E. Morton
Additional contact information
Howard C. Kunreuther: University of Pennsylvania
Thomas E. Morton: University of Chicago (Visiting) and Carnegie-Mellon University

Management Science, 1974, vol. 20, issue 7, 1037-1046

Abstract: In Part I of this paper, we developed an algorithm for finding planning horizons for the deterministic production smoothing problem when all demand was required to be met from regular production, under rather general assumptions for the production, production smoothing, and holding cost functions. Here, in Part II, we develop analogous planning horizons when the model is extended to include such factors as overtime, lost sales, simple subcontracting, undertime, and backlogging. Part II depends heavily on Part I. To avoid unnecessary tedium, all cost functions will be assumed to be stationary in Part II. Overtime, undertime, holding, and backlogging will be assumed to be convex increasing, all other costs linear and proportional. However, it is not difficult to see that the techniques of Part I can be utilized directly to cover more general cost functions. Part II concludes with a discussion of the application of our general approach to actual data.

Date: 1974
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.20.7.1037 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:20:y:1974:i:7:p:1037-1046

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().