The Optimal Profit Strategy of Materials Deterioration in Manufacturing Industry

• Main Authors: Jung-Hui Lin, 林榮輝
• Other Authors: Shy-Der Lin
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/k673t4

碩士 === 中原大學 === 企業管理研究所 === 103 === The management of inventory and production profit growth are the key factors and have been emphasized by the manufacturing managers. Over the past decade economic production quantity (EPQ) and other related research are used extensively in inventory control. However, traditional EPQ and Taft (1918) publication of the inventory model mode haven’t considered the holding cost of raw materials, until Lin (2010) considered the holding cost and deterioration of raw materials as the variables to develop the EPQ model, and then deduce the optimization of inventory policies. This research of generating maximum profits by two types of Inventory cost models. In the first model, one batch sale for all the inventory once the production output reaches the production target. The second model, products are sold according to the demand during the manufacturing process. We analyze the two models which are based on unit time and present value respectively. In setting the relevant cost in the objective of project, then through mathematical analysis to prove that the minimum cost function of each model exist. And to find the optimal production cycle time, optimal order quantity, minimum cost and optimal profits, to assist enterprises to deploy the inventory system with the minimum cost and maximum profits, thus increase the cost-effectiveness, the cash flow and delivery commitment for customers.