(A) capacity constrained single-facility production planning model with inventory deterioration

Abstract

A single-product single-facility production planning model with both the limited production and warehouse capacities is analyzed, where known demands over a finite planning horizon must be satisfied and inventories are subject to time-dependent deteriorations. The model is investigated in two distinctive ways, one with backlogging allowed and the other one without backlogging permitted. In each of the cases, the structure of an optimal solution is characterized and then an efficient solution algorithm is developed. Illustrative numerical examples are presented for both the algorithms.