An optimal batch size for a production system under linearly increasing time-varying demand process

In this paper we consider a manufacturing system which procures raw materials from suppliers and processes them to make a finished product. The problem is to determine an ordering policy for raw materials and a production policy for the finished product to satisfy a deterministic time-varying demand process. We present an optimal solution procedure, using a dynamic programming approach, and also two heuristic procedures. These procedures are illustrated with numerical examples.