Optimal production mix

DOI10.1007/BF00939538MaRDI QIDQ1823848zbMATH OpenWikidataFDO

Authors Yanyan Li

Publication date 1990

Published in Journal of Optimization Theory and Applications (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1007/BF00939538

zbMATH Keywords

convex production costsoptimal controloptimal production ratesstate constraintsstringent capacity constraintsthree subsystemstwo different products

Mathematics Subject Classification ID

Production models (90B30) Production theory, theory of the firm (91B38) Application models in control theory (93C95)

Review text

This paper deals with a production plant in which two different products can be produced. The plant consists of three subsystems \(S_ i\). Before or after a phase of separate processing in subsystems \(S_ 1\) and \(S_ 2\), the two products have to be processed in subsystem \(S_ 3\). Each of these subsystems has a limited capacity. In the first part, we assume empty stocks at the beginning; at a fixed time T in the future, certain quantities \(X_ i\) of the two products have to be delivered to the customers. Facing linear holding costs, convex production costs, and stringent capacity constraints, the problem is to decide when to produce which product at what rate. It is shown that the optimal solution consists of up to six different regimes and that the time paths of the production rates need not be monotonic. These results, which can be obtained analytically, are also illustrated in several numerical examples. Finally, the case is considered where the terminal demand at time T is replaced by a continuous and seasonally fluctuating demand rate. It is demonstrated that the optimal production rates show an interesting and nontrivial behavior. In particular, it may happen that, on intervals where the demand for one product increases, the optimal production rate decreases. This is also demonstrated by computer plots in some numerical examples.

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Cites work

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• Turnpike Horizons for Production Planning

Cited in

(10)

• Minimal processes of limited capacity in production networks
• Optimal scrap combination for steel production
• The canning problem revisited: the case of capacitated production and fixed demand
• Environmental considerations on the optimal product mix
• scientific article; zbMATH DE number 3883923 (Why is no real title available?)
• Optimal Manufacturing of a Two Product Mix
• Substitutes and complements for production planning in assembly systems
• AN APPROACH FOR THE OPTIMAL PRODUCTION RATE OF A SINGLE PRODUCT SYSTEM WITH DYNAMIC DEMANDS
• scientific article; zbMATH DE number 1873244 (Why is no real title available?)
• scientific article; zbMATH DE number 970020 (Why is no real title available?)

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