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Batch size optimization based on production part cost

Windmark, Christina LU orcid ; Spang, Kathrine LU ; Schultheiss, Fredrik LU and Ståhl, Jan-Eric LU (2014) p.1031-1038
Abstract
When investigating different location and/or system designs the possible variables to take into consideration can differs between the alternatives. Different production system will have different optimal working conditions and hence should be compared with parameters suitable for the actual production system. When planning production and calculating production costs the batch size is of high interest. Based on a manufacturing part cost model, this paper will present a new model, close connected to the production system, integrating production performance, set-up times, material costs, material handling costs and tied capital, giving the production economic optimal batch size. The aim is to give companies a model for determining the... (More)
When investigating different location and/or system designs the possible variables to take into consideration can differs between the alternatives. Different production system will have different optimal working conditions and hence should be compared with parameters suitable for the actual production system. When planning production and calculating production costs the batch size is of high interest. Based on a manufacturing part cost model, this paper will present a new model, close connected to the production system, integrating production performance, set-up times, material costs, material handling costs and tied capital, giving the production economic optimal batch size. The aim is to give companies a model for determining the economic optimal batch size in order to use this knowledge to make strategic decisions regarding production planning. Mathematical simulations are performed to analyse the differences in result from the developed model and Wilsons existing standard method for calculating the economic order quantity, hence to verify the importance of making an in-depth analysis, taking the production system into consideration. The advantage of the developed model is the usage of production costs based on variable batch sizes, giving a more accurate outcome. (Less)
Please use this url to cite or link to this publication:
author
; ; and
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
keywords
Batch size, optimal economic batch size, production part costs
host publication
FAIM 2014 - Proceedings of the 24th International Conference on Flexible Automation and Intelligent Manufacturing: Capturing Competitive Advantage via Advanced Manufacturing and Enterprise Transformation
editor
Chen, F. Frank
pages
8 pages
publisher
DEStech Publications
external identifiers
  • scopus:84960853301
ISBN
978-1-60595-173-7
language
English
LU publication?
yes
id
16a7b381-3bc5-4821-a6d2-ece78075cb36 (old id 4533506)
alternative location
https://www.scopus.com/record/display.uri?eid=2-s2.0-84960853301&origin=inward&txGid=CDDFDDE623B950BCAD88F4204F8AF0C3.wsnAw8kcdt7IPYLO0V48gA%3a1
date added to LUP
2016-04-04 12:54:27
date last changed
2024-01-13 05:13:31
@inproceedings{16a7b381-3bc5-4821-a6d2-ece78075cb36,
  abstract     = {{When investigating different location and/or system designs the possible variables to take into consideration can differs between the alternatives. Different production system will have different optimal working conditions and hence should be compared with parameters suitable for the actual production system. When planning production and calculating production costs the batch size is of high interest. Based on a manufacturing part cost model, this paper will present a new model, close connected to the production system, integrating production performance, set-up times, material costs, material handling costs and tied capital, giving the production economic optimal batch size. The aim is to give companies a model for determining the economic optimal batch size in order to use this knowledge to make strategic decisions regarding production planning. Mathematical simulations are performed to analyse the differences in result from the developed model and Wilsons existing standard method for calculating the economic order quantity, hence to verify the importance of making an in-depth analysis, taking the production system into consideration. The advantage of the developed model is the usage of production costs based on variable batch sizes, giving a more accurate outcome.}},
  author       = {{Windmark, Christina and Spang, Kathrine and Schultheiss, Fredrik and Ståhl, Jan-Eric}},
  booktitle    = {{FAIM 2014 - Proceedings of the 24th International Conference on Flexible
 Automation and Intelligent Manufacturing: Capturing Competitive 
Advantage via Advanced Manufacturing and Enterprise Transformation}},
  editor       = {{Chen, F. Frank}},
  isbn         = {{978-1-60595-173-7}},
  keywords     = {{Batch size; optimal economic batch size; production part costs}},
  language     = {{eng}},
  pages        = {{1031--1038}},
  publisher    = {{DEStech Publications}},
  title        = {{Batch size optimization based on production part cost}},
  url          = {{https://www.scopus.com/record/display.uri?eid=2-s2.0-84960853301&origin=inward&txGid=CDDFDDE623B950BCAD88F4204F8AF0C3.wsnAw8kcdt7IPYLO0V48gA%3a1}},
  year         = {{2014}},
}