%0 Journal Article
%@ 0030-3887
%A Sarker, Bhaba R.
%A Diponegoro, Ahmad
%D 2006
%F repository:1629
%J OPSEARCH
%N 4
%P 404-424
%R doi:10.1007/BF03398786
%T Finite horizon planning with fixed-interval deliveries and no shortage
%U http://repository.uhamka.ac.id/id/eprint/1629/
%V 43
%X The ordering policy of raw materials and the manufacturing batch size for frequent deliveries of finished goods over a finite horizon play a significant role in managing the supply chain logistics economically. This research develops an ordering policy for raw materials and determines an economic batch size in a manufacturing system that supplies finished products to customers over a finite planning horizon. Fixed quantities of finished products are delivered to customers at a fixed interval of time. In this model, an optimal multi-ordering policy for procurement of raw materials and production cycle time for a production and supply system is developed to minimize the total cost incurred due to raw materials and finished goods inventories. A closed-form solution to the problem is obtained for the minimal total cost. A lower bound on the optimal solution is developed for the problem and the empirical tests indicate that the lower bounds are very close to the solution.