In
manufacturing systems, the quantity of raw material needed in production is dependent on the production size. In this
paper we consider a
manufacturing system which procures raw materials from suppliers and processes them to make a finished product. The problems are to determine an ordering policy for raw materials (a lot with multiple installments) and a production policy for the finished product to satisfy a deterministic
time-varying demand process. We find an optimal solution for the model by using the Solver of Microsoft Excel. We present some numerical examples for a discussion.