CAN A REDUCTION IN SET UP COSTS INDEED INCREASE TOTAL COSTS?

Research output: Contribution to journalArticlepeer-review

Abstract

Zangwill (1987) has constructed an example which purports to show that reducing set up costs can increase total cost. We show that this happened as a result of restricting the policies to be of a "greedy" nature. The expected cost of truly optimal policies is shown not to increase.
Original languageEnglish
Pages (from-to)1271-1272
Number of pages2
JournalManagement Science
Volume34
Issue number10
DOIs
StatePublished - 1 Oct 1988

Keywords

  • Industrial costs
  • Inventories
  • Inventory control
  • Business planning
  • Industrial engineering
  • Cost control
  • Product costing
  • Cost accounting
  • Production control
  • Economics
  • Management
  • FACILITIES/EQUIPMENT--PLANNING
  • INVENTORY/PRODUCTION--PARAMETRIC ANALYSIS
  • INVENTORY/PRODUCTION--ZERO INVENTORY

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