Production, Capacity And Material Planning Page 40
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60Material Requirements Planning
MIP Formulation
Indices:
i = 1...P
label of each item in BOM (assumed that all labels are sorted with
respect to the production level starting from the end-items)
t = 1...T
period t
m = 1...M
resource m
Parameters:
Γ(i)
i
set of immediate successors of item
Γ
i)
i
-1(
set of immediate predeccessors of item
s
i
setup cost for item
i
c
i
j
quantity of itme
required to produce item
ij
h
i
holding cost for one unit of item
i
a
m
i
capacity needed on resource
for one unit of item
mi
b
m
i
capacity needed on resource
for the setup process of item
mi
L
m
t
available capacity of resource
in period
mt
oc
m
overtime cost of resource
m
G
large number, but as small as possible (e.g. sum of demands)
D
i
t
external demand of item
in period
it
Production Management
139
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