Minimization of Total Variable Cost through Determination of Batch Transfer Size at m Serial CNC-Machining Centers

Abstract

In a batch production series consisting of several process stages for discrete products, the determination of the transfer batch size greatly affects the batch waiting time. For production using a Computer Numerical Control (CNC)-machining center, several process stages can be carried out on one machine with quick setup. The use of a single machine for all stages of the process certainly does not require transfer to the next machine. Thus, there are no material handling costs. However, the use of a single machine will result in longer batch waiting times as the production batch size increases. An increase in the batch waiting time will result in an increase in work-inprocess (WIP) inventory cost. This research was conducted to reduce the total variable cost consisting of WIP inventory cost and material handling cost.