A mathematical model for a volume flexible manufacturing system is developed in a family production context, assuming that there exists a dedicated production facility as well as a separate management unit for each of the items. The possibility of machine breakdowns resulting in idle times of the respective management units is taken into account. The production rates are treated as decision variables. | Yugoslav Journal of Operations Research 16 (2006), Number 1, 85-96 ON A VOLUME FLEXIBLE PRODUCTION POLICY IN A FAMILY PRODUCTION CONTEXT Shib Sankar SANA Department of Mathematics, Bhangar Mahavidyalaya , University of Calcutta, . INDIA shib_sankar@ Kripasindhu CHAUDHURI Department of Mathematics, Jadavpur University, India k_s_chaudhuri@ Received: May 2004 / Accepted: June 2005 Abstract: A mathematical model for a volume flexible manufacturing system is developed in a family production context, assuming that there exists a dedicated production facility as well as a separate management unit for each of the items. The possibility of machine breakdowns resulting in idle times of the respective management units is taken into account. The production rates are treated as decision variables. It is also assumed that there is a limitation on the capital available for total production. An optimal production policy is derived with maximization of profit as the criterion of optimality. The results are illustrated with a numerical example. Sensitivity of the optimal solution to changes in the values of some key parameters is also studied Keywords: Inventory, shortage, volume flexibility, family production, machine-breakdown, idletime. 1. INTRODUCTION In the Classical Economic Production Lot Size (EPLS) model, the amount ordered becomes available at a constant supply rate. That means, the production rate of the machine is assumed to be predetermined and inflexible [10]. A fixed rate of production is inconvenient in many respects. Firstly, a production rate much higher than the demand rate leads to rapid accumulation of inventories resulting in higher holding costs and other related problems. If the machine production rate is less than the demand 86 . Sana, K. Chaudhuri / On a Volume Flexible Production Policy rate, the management has to face stock-out situations. These inconveniences arise due to inability of the manufacturing system to adjust its
