(A) multi-product, multi-facility production planning model with capacity constraints

Abstract

In this thesis, a multiproduct, multifacility production model which is essentially a series system of two facilities is considered. The first facility can receive raw materials only, and produce two different outputs in the fixed ratio of α to β ; one for its own market demands and the other for the following facility. The last facility can receive inputs from the previous facility and supply the market demands only. There are time-varying capacity constraints in the production levels of each facility for each period. Backlogging is not allowed. The objective is to find an optimal production plan that minimizes the total production and inventory costs. All cost functions are concave. The structure of the optimal production plan is characterized in view of the optimal flow in the capacitated network. And then a dynamic programming algoithm which can find an optimal production plan is developed.