NEW TECHNOLOGY INVESTMENT, SETUP COST REDUCTION, PRODUCTION COST REDUCTION, AND PROCESS QUALITY IMPROVEMENT (INVENTORY CONTROL, DETERMINISTIC MODELS).
Item
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Title
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NEW TECHNOLOGY INVESTMENT, SETUP COST REDUCTION, PRODUCTION COST REDUCTION, AND PROCESS QUALITY IMPROVEMENT (INVENTORY CONTROL, DETERMINISTIC MODELS).
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Identifier
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AAI8629725
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identifier
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8629725
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Creator
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PAKNEJAD, MOHAMMAD JAVAD.
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Contributor
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Georghios P. Sphicas
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Date
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1986
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Language
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English
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Publisher
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City University of New York.
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Subject
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Operations Research
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Abstract
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Recently, Porteus developed a framework for analyzing the economic tradeoffs associated with lower setup costs. He introduced the option of investing in order to reduce the setup cost parameter in the classical EOQ model. Porteus extended the framework to include a feature for certain quality defect considerations and introduced the option of investing in process quality improvement in the EOQ model adjusted for quality.;The purpose of this paper is to extend Porteus' framework to a deterministic inventory model (called the basic model in this paper) with finite production rate and finite shortage cost. Porteus's framework by introducing the option of investing in new technology in order to reduce the production costs. Three aspects of advantages of investing in new technology are analyzed, namely, reduced setup cost, reduced production cost, and improved process quality. The sole option of investing in new technology in order to reduce the setup cost is considered. Explicit results are obtained in two special cases of investment cost function, logarithmic and power. The option of investing in new technology in order to reduce the production costs per unit parameter of the basic model with no backorders is introduced. The two investment options are combined and an analysis of the simultaneous selection of the setup cost parameter and the production cost parameter of the basic model with no backorders is carried out. It is assumed, as in Porteus, that while producing a single unit of the product, the production process goes "out of control", with a given probability, and starts to produce defective units until the entire lot is produced. A rework cost is added to the usual costs included in the basic model, and some explicit solutions are derived. The option of investing in new technology is considered in order to reduce the setup cost parameter of the basic model adjusted for quality, and derives explicit solutions in two special cases of logarithmic and power investment cost functions. Finally, an analysis of the simultaneous selection of the process quality parameter and the setup cost parameter of the basic model adjusted for quality is carried out. (Abstract shortened with permission of author.).
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
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Program
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Business
