Economic Analysis of Production Scheduling of a Calendar Manufacturing Process

摘要

Minimizing the cost of capital tied up by inventory is frequently an important management objective of production scheduling. The paper determines the optimal production schedule of a calendar manufacturer first with a mathematical programming model, and next with scheduling theory based sequencing rules. In both cases inventory holding cost is approximated by the interest on the cost of capital tied up by inventory. Interest is calculated with periodic and also with continuous interest calculation method providing this way a lower and an upper bound for the possible value. Based on the examination of the scheduling rules, however, it is demonstrated, that the optimal sequences of the two different methods are very rarely different in practices. The performance of the suggested methods is illustrated with the example of the calendar manufacturer.