The Production And Logistic Integrated Batch Optimization Applications Of Manufacturing A Company

With the global economic integration of the sustainable development, the increasinglyfierce market competition, manufacturing production mode and the cost of the product hasbeen more and more transparent, while the market and consumers have become more andmore mature. The manufacturing industry has entered the era of little profit, enterprises arefacing tough cost challenges. How to control the logistics costs in production process is apriority of current manufacturing enterprises.Batch size will impact enterprise’s logistics cost directly, and enterprise can get thelowest logistics cost by batch size control through the various stages of the logisticsoperation. The material is consumed linearly in the classical EOQ model. However, inreality enterprise, although the material consumption rate is same, if the same materialconsumption batch size is different, its logistics costs also will be different. For example,the material consumption rate is10pc/day, using10pc materials every day compare tousing100pc materials at the tenth day. The corresponding inventory costs andtransportation costs are different. The impact of logistics cost from material consumptionbatch size is not discussed in the EOQ model. In this paper, through the basic inventorytheory, the economic order quantity (EOQ) model and the economic production quantity(EPQ) model is discussed, the logistics cost of enterprises for raw materials and finishedgoods logistics cost logistics cost study. Combining the enterprise’s reality, consideringfrom the purchase of raw materials to the warehouse and distribution of raw materials tothe workshop, the workshop will be finished products storage to finished goods warehouse,as well as the production and inventory cost of each phase such as the logistics costinfluence each other, the establishment of enterprise logistics total cost model, achieve inall logistics stage economic quantities. And finally, this model was applied to A company’sactual operation, improve the A various logistics phases of the batch control, optimizationof A company logistics cost, but also proved this model validity.