Impact of the Setup Variable on Capacity and Inventory Decisions

1 January 1988

journal article
Published by Academy of Management in Academy of Management Review

Vol. 13 (1) , 91-103
https://doi.org/10.5465/amr.1988.4306794

Abstract

This paper examines the operating characteristics of setup when used as a decision variable in a capacity-constrained production-inventory environment. Within this study, the interrelationships among capacity expansion, order quantity adjustment, and setup time reduction are analyzed, and a model is formulated to evaluate the relative effectiveness of these decision variables. A series of propositions is presented to suggest future directions for research.

Keywords

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