Volume 33, Issue 1 (IJIEPR 2022)                   IJIEPR 2022, 33(1): 1-17 | Back to browse issues page

XML Print

Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Mokhtari H, Salmasnia A, fallahi A. Economic Production Quantity Under Possible Substitution: A Scenario Analysis Approach. IJIEPR 2022; 33 (1) :1-17
URL: http://ijiepr.iust.ac.ir/article-1-1016-en.html
Economic Production Quantity Under Possible Substitution: A Scenario Analysis Approach
Hadi Mokhtari 1, Ali Salmasnia2 , Ali Fallahi3
1- Associate Professor, Department of Industrial Engineering, Faculty of Engineering,University of Kashan, Kashan, Iran , mokhtari_ie@yahoo.com
2- Associate Professor, Department of Industrial Engineering, Faculty of Technology and Engineering, University of Qom, Qom, Iran
3- MSc Student, Department of Industrial Engineering, Sharif University of Technology, Tehran, Iran
Abstract:   (2085 Views)
This paper designs a Scenario analysis approach to determine the joint production policy for two products under possible substitution. The Scenario analysis is designed to improve decision making by considering possible outcomes and their implications. The traditional multi-products production models assume that there is no possible substitution between products. However, in real-world cases, there are many substitutable products where substitution may occur in the event of a product stock-out. The proposed model optimizes production quantities for two products under substitution with the aim of minimizing the total cost of inventory system, including setup and holding costs, subject to a resource constraint. To analyze the problem, four special Scenarios are derived and discussed in detail. Furthermore, the total cost functions are derived for each Scenario separately, and then a solution procedure is suggested based on the Scenarios developed. The numerical examples are implemented, and the results are discussed in detail.
Keywords: Scenario Analysis, Production-Inventory Systems, Substitutable Products, Joint Production Policy
Full-Text [PDF 956 kb]   (918 Downloads)    
Type of Study: Research | Subject: Production Planning & Control
Received: 2020/01/20 | Accepted: 2021/11/20 | Published: 2022/03/10
Add your comments about this article : Your username or Email:
CAPTCHA
Send email to the article author

Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.