A Two Product Dynamic Economic Lot Size Production Model with Either-Or Production Constraints,
RAND CORP SANTA MONICA CALIF
Pagination or Media Count:
The paper considers the production of two products with known demands over a finite set of periods. The production and inventory carrying costs for each product are assumed to be concave. The authors seek the minimum cost production schedule meeting all demands, without backlogging, assuming that at most one of the two products can be produced in any period. The optimization problem is first stated as a non-linear programming problem, which allows the proof of a result permitting the search for the optimal policy to be restricted to those which produce a product only when its inventory level is zero. A dynamic programming formulation is given and the model is then formulated as a shortest route problem in a specially constructed network.
- Economics and Cost Analysis
- Operations Research