Production, Capacity And Material Planning Page 13

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Master Production Scheduling
Make-To-Stock-Modeling
Q =
production quantity of product i in period t
it
I = Inventory of product i at end of period t
it
=
D
demand (requirements) for product i in time period t
it
=
a
production hours per unit of product i
i
=
h
inve
ntory holding cost per unit of product i per time period
i
=
A
set-up cost for product i
i
=
G
production hours available in period t
t
=
>
y
1,if set-up for product i occurs in period t (Q
0)
it
it
Production Management
112

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