Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Optimal Production Capacity and Outsourcing Production Planning for Production Facility Producing Multi-Products

다제품을 생산하는 생산설비에 대해 최적 생산용량과 외주생산계획

  • Chang, Suk-Hwa (Department of Industrial and Management Engineering, University of Incheon)
  • 장석화 (인천대학교 산업경영공학과)
  • Received : 2012.08.15
  • Accepted : 2012.10.04
  • Published : 2012.12.31
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Abstract

The demand for facility used in producing multi-products is changed dynamically for discrete and finite time periods. The excess or the shortage for facility is occurred according to difference of the facility capacity size and demand for facility through given time periods. The shortage facility is met through the outsourcing production. The excess facility cost is considered for the periods that the facility capacity is greater than the demand for the facility, and the outsourcing production cost is considered for the periods that the demand for facility is greater than the facility capacity. This paper addresses to determine the facility capacity size, outsourcing production products and amount that minimizes the sum of the facility capacity cost, the excess facility cost and the outsourcing production cost. The characteristics of the optimal solution are analyzed, and an algorithm applying them is developed. A numerical example is shown to explain the problem.

Keywords

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