TY - JOUR
T1 - OPTIMAL REJECT ALLOWANCE WITH CONSTANT MARGINAL PRODUCTION EFFICIENCY.
AU - Beja, Avraham
PY - 1977
Y1 - 1977
N2 - A job shop must fulfill an order for N good items. Production is conducted in ″lots″ , and the number of good items in a lot can be accurately determined only after production of that lot is completed. If the number of good items falls short of the outstanding order, the shop must produce further lots, as necessary. Processes with ″constant marginal production efficiency″ are investigated. The revealed structure allows efficient exact computation of optimal policy. The resulting minimal cost exhibits a consistent (but not universal) pattern whereby higher quality of production is advantageous even at proportionately higher marginal cost.
AB - A job shop must fulfill an order for N good items. Production is conducted in ″lots″ , and the number of good items in a lot can be accurately determined only after production of that lot is completed. If the number of good items falls short of the outstanding order, the shop must produce further lots, as necessary. Processes with ″constant marginal production efficiency″ are investigated. The revealed structure allows efficient exact computation of optimal policy. The resulting minimal cost exhibits a consistent (but not universal) pattern whereby higher quality of production is advantageous even at proportionately higher marginal cost.
UR - http://www.scopus.com/inward/record.url?scp=0017468319&partnerID=8YFLogxK
U2 - 10.1002/nav.3800240103
DO - 10.1002/nav.3800240103
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AN - SCOPUS:0017468319
SN - 0894-069X
VL - 24
SP - 21
EP - 33
JO - Naval Research Logistics
JF - Naval Research Logistics
IS - 1
ER -