Shelf life considerations in a family production context

Abstract

In this paper we consider a piece of manufacturing equipment dedicated to the production of a family of items. With known level demand rates for the individual items the policy used is to cycle through production of all of the items every T units of time. The paper addresses the choice among two adjustment options when the cost-minimizing T value leads to potential spoilage of an item because of shelf life considerations. The less obvious option of slowing the production rate of the concerned item is shown to be more cost effective than simply reducing the T value.