Inventory model for two-product single-facility system

Abstract

This study is concerned with determining production lot sizes and repeating sequence for two product on a single facility. The main part of this study are the following two areas: first, a study of determining economic lot sizes of two products with finite demand for the common demand horizon, second, a study of integrated inventory model in which one product is component of the other, and both of them are produced on a single facility. A search procedure permits unequal lot sizes for the more frequently manufactured product. And due to this, it is possible to get a lower cost solution. Numerical examples are presented to illustrate the methods.