A DYNAMIC UNIT COST BASED ECONOMIC PRODUCTION QUANTITY MODEL WITH FUZZY JIT CONCEPT

Contemporarily, economic production lot quantity models donot make the cost items of production lot outstanding in the modeling. Resultant unsuitable production lots cannot achieve less cost of setup as well as less cost of inventory carrying in reality. Therefore, this paper proposes a dynamic unit-production-cost framework based and cost relational EPQ model. It enables us to analyze interactions of several key-cost factors. Using the change in the production lot quantity, that results in a dynamic unit-production-cost structure, an optimal production lot matching the true JIT concept and having the minimized total cost can be sought. This paper provides the model's development process and operation and also the results of an applied practical example.