Optimal lot sizing with CNC machines

Abstract

An algorithm is presented for determining the optimal machining parameters for each of a set operations required to produce a product in the economic lot sizing context using a CNC Machine Tool. The cost components considered are: (1) inventory carrying cost, (2) cost of machine and operator time, (3) the cost of tools consumed and (4) the set up cost for producing each lot. The optimizing criterion is minimum total cost comprising the above components on a unit time basis. It is shown that the optimal machining parameters could be outside what is considered the efficiency range in traditional machining economics.

Keywords and phrases:

• Machining economics
• inventory
• optimization
• CNC Machines