Title :
The Effects of Inflation and Time Value of Money on a Production Model with a Random Product Life Cycle
Author :
Yu, Jonas C P ; Wee, H.M. ; Wang, K.J. ; Chang, W.C.
Author_Institution :
Takming Coll., Taipei
Abstract :
This paper extends Moon and Lee´s EOQ model to consider a production system with a time-value of money and inflation under a random life cycle. Two conditions are discussed: the first is when the product life cycle ends in the production stage and the second is when the product life cycle ends in the non-production stage. We develop an algorithm to find the optimal period time and the lowest expected total cost. Numerical examples and sensitivity analyses are given to validate the results of the production model.
Keywords :
financial management; logistics; product life cycle management; economic order quantity; money time-value; optimal period time; production model; production stage; production system; random product life cycle; Cost function; Engineering management; Exponential distribution; Financial management; Industrial engineering; Lot sizing; Moon; Production systems; Sensitivity analysis; Technology management; EOQ; inflation; life cycle; time-value of money;
Conference_Titel :
Service Systems and Service Management, 2007 International Conference on
Conference_Location :
Chengdu
Print_ISBN :
1-4244-0885-7
Electronic_ISBN :
1-4244-0885-7
DOI :
10.1109/ICSSSM.2007.4280141
