Determination of economic production quantity in a multi-stage production system

In this paper two models have been suggested for determining economic production quantity in a multi-stage pro- duction system. The demand for the product is assumed con- stant and it is supplied by manufacturing the product in equal production runs. The production lot is transported in a number of sub-batches of equal sizes. Each sub-batch is processed on the production stages without wait during process. As a result of processing the sub batches without wait during process, the processing on the production stages is interrupted. Expressions have been derived for the manufacturing cycle time, the total process inventory and the finished product inventory and then total variable cost models have been suggested and manipu- lated for obtaining the economic production quantity.