Accession Number:

AD0614904

Title:

A DYNAMIC MULTI-PRODUCT MULTI-FACILITY PRODUCTION AND INVENTORY MODEL,

Descriptive Note:

Corporate Author:

STANFORD UNIV CALIF DEPT OF INDUSTRIAL ENGINEERING

Personal Author(s):

Report Date:

1965-04-29

Pagination or Media Count:

104.0

Abstract:

This paper develops a multi-product, multi-facility economic lot size model. Roughly speaking, economic lot size models deal with production and inventory situations in which the product demand is known in advance and in which the cost functions are concave. The objective of the model is to determine a production schedule, in terms of how much to produce and when, that minimizes overall cost. Another important aspect of the model is that it allows backlogging of unsatisfied demand. The backlogging analysis actually requires consideration of inventory cost functions which are not concave. To treat such situations the piecewise concave function was developed. Basically a piecewise concave function is the maximum of a collection of concave functions. Using the notion of piecewise concavity a small set of production schedules is determined that contains the minimum cost schedule. Dynamic programming algorithms are presented to efficiently calculate the minimum cost schedule for the series and parallel cases. Author

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Distribution Statement:

APPROVED FOR PUBLIC RELEASE