Engineering Commons^™

An Optimal Operational Policy For An Integrated Production-Delivery System Under Continuous Price Decrease, Deniz Mungan

LSU Master's Theses

In today’s competitive world, the unit cost of a high-tech product declines significantly over its life cycle. An integrated inventory model for products experiencing continuous decrease in unit cost is studied in this research. In this integrated model a manufacturing facility purchases raw material from outside supplier at a fixed size and supplies a fixed quantity of finished products to a buyer periodically after using its production processes. Moreover, buyers demand frequent deliveries of small lots of finished products since the price is continuously decreasing, and this emphasizes the significance of just-in-time (JIT) inventory management for successful companies in technology-related …