Trigger Decision Rules for Allocating Inventory to Buffers and the Aggregation of Cast Functions

摘要

An expression is formulated review cost as a function of buffer and lot size for a product. Three formulations of depletion cost are presented. An optimal decision rule for setting buffer level is derived for each product wean lot size is given and there is a constraint on total finished inventory. An exact aggregation of the individual product cost function yields a cost function in tears of aggregate inventory. These results can be used 1) for scheduling the production of individual products when the total production is determined by an aggregated production scheduling rule, or 2) for scheduling purchases when a restriction is placed on total inventory.