Abstract
Given capacity of a manucacturing plant, numerous studies have been presented in the fields of scheduling and inventory control. This paper attempts to determine the most profitable scale of a plant in its construction planning stage taking account of selling price, costs of construction, production and inventory when there is seasonal fluctuation in demend. The demand pattern which is underconsideration is such that it changes from low rate to higher level within a given period which repeats itself. The optimal solutin is obtained and the graphical interpretation of it is shown.
