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

fYear

2007

fDate

9-11 June 2007

Firstpage

1

Lastpage

6

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;

fLanguage

English

Publisher

ieee

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

Type

conf

DOI

10.1109/ICSSSM.2007.4280141

Filename

4280141