Solving an economic production lot size problem incorporating overtime feature

摘要

With the purpose of meeting excessive demand or leveling production schedule, managers often look for overtime option to effectively expedite production process and increase capacity. Motivated by this idea, an economic production lot size (EPLS) problem incorporating overtime feature is explored. A mathematical model is developed to portray the problem, thru formulation and derivation procedure, the expected system cost function is first derived. With a help from differential calculus, we prove that the cost function is convex, and consequently, the most economic production lot size is determined. Numerical demonstration is provided for showing the applicability of the obtained result.