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Optimizing a Production System with a Fixed Delivery Schedule


This note considers a model in which a manufacturing company purchases a raw material, manufactures a product (at a finite rate) and ships a fixed quantity of the product to a single customer at fixed and regular intervals of time, as specified by the customer. In general there are several shipments made during each production run. The objective is to determine a purchasing and production schedule which minimises the total cost of purchasing, manufacturing and stockholding. It extends previously published work by considering the possibility that a single raw material purchase provides stock for several production runs or that several raw material purchases provide stock for a single production run.

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Correspondence to Roger M. Hill.

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Hill, R. Optimizing a Production System with a Fixed Delivery Schedule. J Oper Res Soc 47, 954–960 (1996).

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  • economic manufacturing quantity
  • fixed-quantity delivery
  • production-inventory systems