Abstract
In this paper we consider multi-stage, multi-product production, inventory and transportation systems including lot production process, and develop a mathematical model for a pull type ordering system. As the model is formulated as an integer programming problem, we propose an approximate procedure to obtain a suboptimal solution in short time using a mathematical programming package. Finally we show a computational example of the model applied to an actual automobile parts manufacturer, verify the effectiveness of the solution procedure and clarify the applicability of the proposed model.
