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638. Optimal Order Quantity for Subcomponent: An Extension of EOQ Model

Invited abstract in session TD-49: Production planning problems, stream Lot Sizing, Lot Scheduling and Production Planning.

Tuesday, 14:30-16:00
Room: M1 (building: 101)

Authors (first author is the speaker)

1. Yash Aneja
Odette School of Business, University of Windsor

Abstract

Some components used to assemble a final product are assembled in-house in separate assembly lines. Subcomponents are used to assemble components. Some subcomponents are purchased outside or produced outside the plant and delivered. We want to decide the order quantity of subcomponent which is used in the production of component.
As an example, in many auto manufacturing plants, vehicle engine (component) is assembled in-house and used in vehicle (final product) assembly line. Major components (subcomponents) of engine are engine block, crank shaft, piston…. Some auto manufacturers assemble engine in-house and make engine block outside the vehicle manufacturing plant and deliver it. We want to find the optimal delivery batch size (order size) of engine block to vehicle manufacturing plant.
We develop a mathematical model for the problem and obtain a simple optimal poicy.

Keywords

Status: accepted

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