Minimizing the difference between intermittent and continuous production with back orders

Abstract

Abstract

In the case of batch manufacturing or intermittent production, production activity usually takes place for a portion of cycle time. With a reduction in manufacturing rate, this activity continues for a longer time at a stretch. This is referred to as continuous production in the present paper. To provide more generalization, back orders are included in the analysis, and an attempt is made to minimize the difference between intermittent and continuous production from the relevant cost point of view. The analysis is expected to result in greater flexibility in decision-making. Industrial or business management can make a decision in favour of either intermittent or continuous production depending on quantitative analysis as well as various qualitative factors.