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JOB-SHOP LOT RELEASE SIZES
Source: Management Science Date: April, 1968
A predecessor to the concepts of just in time inventory and production was the idea of optimizing the production of material with the assistance of operations research models. Schussel here proposes an original model, (ELRS, Economic Lot Release Size) for determining optimal job-shop lot sizes. Since the setting of the lot release size was one of the most important controlling parameters in the scheduling of a job-shop, the improvement in technique described in the article resulted in substantial savings to job-shop operation costs. In those cases where management was already using an EOQ (Economic Order Quanity) method for determining lot release sizes, the input data and system required for the implementation of ELRS was basically similar and therefore the new and improved analysis could be substituted at relatively minor inconvenience to the user. For those job-shops which set lot release sizes by informal means, the ELRS concept provided enough of an improved technique to induce a use of the analysis.
