An optimal batch size for a JIT manufacturing system

This paper addresses the problem of a manufacturing system that procures raw materials from suppliers in a lot and processes them to convert to finished products. It proposes an ordering policy for raw materials to meet the requirements of a production facility. In turn, this facility must deliver finished products demanded by outside buyers at fixed interval points in time. In this paper, first we estimate production batch sizes for a JIT delivery system and then we incorporate a JIT raw material supply system. A simple algorithm is developed to compute the batch sizes for both manufacturing and raw material purchasing policies. Computational experiences of the problem are also briefly discussed. (C) 2002 Elsevier Science Ltd. All rights reserved.