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Setup Cost (setup + cost)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	44%
Engineering	22%

Selected Abstracts

Algorithm for Spatial Clustering of Pavement Segments

COMPUTER-AIDED CIVIL AND INFRASTRUCTURE ENGINEERING, Issue 2 2009
Chientai Yang
This article formulates a new spatial search model for determining appropriate pavement preservation project termini. A spatial clustering algorithm using fuzzy c-mean clustering is developed to minimize the rating variation in each cluster (project) of pavement segments while considering minimal project scope (i.e., length) and cost, initial setup cost, and barriers, such as bridges. A case study using the actual roadway and pavement condition data in fiscal year 2005 on Georgia State Route 10 shows that the proposed algorithm can identify more appropriate segment clustering scheme, than the historical project termini. The benefits of using the developed algorithm are summarized, and recommendations for future research are discussed. [source]

Economic Production Lot Sizing with Periodic Costs and Overtime,

DECISION SCIENCES, Issue 3 2001
E. Powell Robinson Jr
Abstract Traditional approaches for modeling economic production lot-sizing problems assume that a single, fixed equipment setup cost is incurred each time a product is run, regardless of the quantity manufactured. This permits multiple days of production from one production setup. In this paper, we extend the model to consider additional fixed charges, such as cleanup or inspection costs, that are associated with each time period's production. This manufacturing cost structure is common in the food, chemical, and pharmaceutical industries, where process equipment must be sanitized between item changeovers and at the end of each day's production. We propose two mathematical problem formulations and optimization algorithms. The models' unique features include regular time production constraints, a fixed charge for each time period's production, and the availability of overtime production capacity. Experimental results indicate the conditions under which our algorithms' performance is superior to traditional approaches. We also test the procedures on a set of lot-sizing problems facing a national food processor and document their potential economic benefit. [source]

Product design rivalry: multiple-attributes approach to differentiation

MANAGERIAL AND DECISION ECONOMICS, Issue 7 2008
Nobuo Matsubayashi
This paper studies product design competition between potentially symmetric firms. We specifically employ the multiple-attributes approach as the method of product design. While various product-specific attributes contribute to firms' differentiation, they may cause confusion resulting in consumer dissatisfaction. We show that in the presence of these opposite effects and any setup costs for attributes, the differentiation by multiple attributes is beneficial for firms if, and only if they are moderately competitive. We furthermore show that the socially efficient number of attributes can only be sustained when there are not very many firms and the setup cost is low. Copyright © 2008 John Wiley & Sons, Ltd. [source]

Efficient organization of information processing

MANAGERIAL AND DECISION ECONOMICS, Issue 1 2007
Jacek Cukrowski
The paper examines the application of the concept of economic efficiency to organizational issues of collective information processing in decision making. Information processing is modeled in the framework of the dynamic parallel processing model of associative computation with an endogenous setup cost of the processors. The model is extended to include the specific features of collective information processing in the team of decision makers which may lead to an error in data analysis. In such a model, the conditions for efficient organization of information processing are defined and the architecture of the efficient structures is considered. We show that specific features of collective decision making procedures require a broader framework for judging organizational efficiency than has traditionally been adopted. In particular, and contrary to the results available in economic literature, we show that there is no unique architecture for efficient information processing structures, but a number of various efficient forms. The results indicate that technological progress resulting in faster data processing (ceteris paribus) will lead to more regular information processing structures. However, if the relative cost of the delay in data analysis increases significantly, less regular structures could be efficient. Copyright © 2007 John Wiley & Sons, Ltd. [source]

Optimal job splitting on a multi-slot machine with applications in the printing industry

NAVAL RESEARCH LOGISTICS: AN INTERNATIONAL JOURNAL, Issue 3 2010
Ali Ekici
Abstract In this article, we define a scheduling/packing problem called the Job Splitting Problem, motivated by the practices in the printing industry. There are n types of items to be produced on an m -slot machine. A particular assignment of the types to the slots is called a "run" configuration and requires a setup cost. Once a run begins, the production continues according to that configuration and the "length" of the run represents the quantity produced in each slot during that run. For each unit of production in excess of demand, there is a waste cost. Our goal is to construct a production plan, i.e., a set of runs, such that the total setup and waste cost is minimized. We show that the problem is strongly NP-hard and propose two integer programming formulations, several preprocessing steps, and two heuristics. We also provide a worst-case bound for one of the heuristics. Extensive tests on real-world and randomly generated instances show that the heuristics are both fast and effective, finding near-optimal solutions. © 2010 Wiley Periodicals, Inc. Naval Research Logistics, 2010 [source]

A logistics scheduling model: Inventory cost reduction by batching

NAVAL RESEARCH LOGISTICS: AN INTERNATIONAL JOURNAL, Issue 4 2005
Xiangtong Qi
Abstract Logistics scheduling refers to the problems where the decisions of job scheduling and transportation are integrated in a single framework. In this paper, we discuss a logistics scheduling model where the raw material is delivered to the shop in batches. By making the batching and scheduling decisions simultaneously, the total inventory and batch setup cost can be reduced. We study different models on this issue, present complexity analysis and optimal algorithms, and conduct computational experiments. Some managerial insights are observed. © 2005 Wiley Periodicals, Inc. Naval Research Logistics, 2005. [source]

Product design rivalry: multiple-attributes approach to differentiation

Resource allocation with lumpy demand: To speed or not to speed?

NAVAL RESEARCH LOGISTICS: AN INTERNATIONAL JOURNAL, Issue 3 2004
Bintong Chen
Abstract In the classical EPQ model with continuous and constant demand, holding and setup costs are minimized when the production rate is no larger than the demand rate. However, the situation may change when demand is lumpy. We consider a firm that produces multiple products, each having a unique lumpy demand pattern. The decision involves determining both the lot size for each product and the allocation of resources for production rate improvements among the products. We find that each product's optimal production policy will take on only one of two forms: either continuous production or lot-for-lot production. The problem is then formulated as a nonlinear nonsmooth knapsack problem among products determined to be candidates for resource allocation. A heuristic procedure is developed to determine allocation amounts. The procedure decomposes the problem into a mixed integer program and a nonlinear convex resource allocation problem. Numerical tests suggest that the heuristic performs very well on average compared to the optimal solution. Both the model and the heuristic procedure can be extended to allow the company to simultaneously alter both the production rates and the incoming demand lot sizes through quantity discounts. Extensions can also be made to address the case where a single investment increases the production rate of multiple products. © 2004 Wiley Periodicals, Inc. Naval Research Logistics, 2004. [source]

PRODUCT OFFERING, PRICING, AND MAKE-TO-STOCK/MAKE-TO-ORDER DECISIONS WITH SHARED CAPACITY

PRODUCTION AND OPERATIONS MANAGEMENT, Issue 3 2002
GREGORY DOBSON
In an era of mass customization, many firms continue to expand their product lines to remain competitive. These broader product lines may help to increase market share and may allow higher prices to be charged, but they also cause challenges associated with diseconomies of scope. To investigate this tradeoff, we considered a monopolist who faces demand curves, which for each of its potential products, decline with both price and response time (time to deliver the product). The firm must decide which products to offer, how to price them, whether each should be make-to-stock (mts) or make-to-order (mto), and how often to produce them. The offered products share a single manufacturing facility. Setup times introduce disceonomies of scope and setup costs introduce economies of scale. We provide motivating problem scenarios, model the monopolist's problem as a non-linear, integer programming problem, characterize of the optimal policy, develop near-optimal procedures, and discuss managerial insights. [source]