Abstract
Product demand is currently in a state of great flux, and most manufacturers are faced with the need to develop economic long-term process capability and capacity plans and short-term (annual) production plans. These plans must be geared toward future possibilities, rather than relying on results of the past. When making such plans, it is necessary to increase reliance on process capability and capacity plans for short-term production plans. An index of economy given as relative annual profit can be used to establish the company's aspiration level in economic process capability and capacity planning. The current paper proposes a theoretical product mix planning model based on the satisfying principle that takes into account factors such as optimal mix planning based on nonlinear programming of any given product and the allowing of room for a search for new products within the process of short-term production planning through the use of this aspiration level. Within this model, new product searches are conducted one by one, and the imputed value concept plays an important role in the process.
