Production, Capacity And Material Planning Page 16
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60Master Production Scheduling
m
n
module types and
product types
Q
= quantity of module k produced in period t
kt
g
= number of modules of type k required to assemble order j
kj
Decision Variables:
I
= inventory of module k at the end of period t
kt
y
= 1, if order j is assembled and delivered in period t; 0, otherwise
jt
h
= holding cost
k
π
= penalty costs, if order j is satisfied in period t and order j is due in
jt
period t’ (t’<t); holding costs if t’ > t
Production Management
115
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