Abstract
In this paper, we deal with economic analysis of the multiproduct production system by using break-even analysis. Considering semi-variable costs which depend on the production volume and the operation planning, we formulate the problem of obtaining the optimum operation planning and propose reccurence relations of dynamic programming under the consideration of seasonal demand of each product. Also the mathematical relationship between the production volume(man-hours required)and profits is specified for each alternative of product-mex, and the economic product-mex policy which maximizes profits is proposed. Finally a numerical example is presented to explain the procedure proposed.