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The Production of Several Items in a Single Facility with Linearly Changing Demand Rates
Author(s) -
Wagner Bret J.,
Davis Darwin J.,
Kher Hemant V.
Publication year - 2002
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.2002.tb01647.x
Subject(s) - production (economics) , time horizon , minos , computer science , production planning , product (mathematics) , extension (predicate logic) , operations research , service (business) , linear programming , economics , microeconomics , mathematical optimization , business , marketing , mathematics , algorithm , programming language , physics , geometry , nuclear physics , neutrino , neutrino oscillation
In this paper we extend the ELSP model to allow for linearly changing demand rates over a fixed planning horizon. This extension of the ELSP research provides a model that can be used in coordinating the production and marketing planning activities in a firm. The model allows the user to evaluate the impact of changes in product demand on production costs and customer service. We solve the model using a standard nonlinear programming package (MINOS) and show through examples based on actual production data how the model can be used to support coordinated production and marketing planning.