A PRODUCTION PLANNING MODEL FOR MULTI-PRODUCT FACILITIES

Abstract

A production planning model for multi-product facilities is analyzed, in which known demands must be satisfied. In the model, in every production period each facility produces a certain number of items each taking a fixed part of the production amount. Concave production costs dependent upon the production in different facilities and piecewise concave inventory costs are considered. Both the nonbacklog and backlog permitted cases are considered. The structure of an optimal solution is characterized and then used, illustratively in a simple dynamic programming algorithm for nonbacklog single-facility problems.