JIT purchasing and setup reduction in an integrated inventory model

We study the effects of JIT order quantities on the purchase of raw materials and of the investments to reduce setup time. We examine the total relevant cost for an integrated inventory model, which unifies the finished product and the raw materials used for manufacturing it. A comparison of the tot...

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Bibliographic Details
Published inInternational journal of production research Vol. 30; no. 2; pp. 255 - 266
Main Authors HONG, JAE-DONG, HAYYA, JACK C., KIM, SEUNG-LAE
Format Journal Article
LanguageEnglish
Published London Taylor & Francis Group 01.02.1992
Washington, DC Taylor & Francis
Subjects
Applied sciences
Exact sciences and technology
inventory control
Inventory control, production control. Distribution
Operational research and scientific management
Operational research. Management science
production costs
Purchasing
Just in time
Economic order quantity
Inventory control
Raw materials
Prefinished product
Cost analysis
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Summary:We study the effects of JIT order quantities on the purchase of raw materials and of the investments to reduce setup time. We examine the total relevant cost for an integrated inventory model, which unifies the finished product and the raw materials used for manufacturing it. A comparison of the total costs between our JIT model and the conventional 'economic production quantity' model suggests that JIT order splitting and investment in setup reduction could be cost-effective.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0020-7543
1366-588X
DOI:10.1080/00207549208942893