Module 8 : Aggregate Production Planning
Modelling Approaches

Example Problem

  • Four period problem (t = 1, 2, 3, 4)
  • Production in period t
    - involves a set up cost At
    - and a unit variable cost ct for raw materials, utilities, labour etc
    - Ct( Xt ) = At + ct Xt ,( if Xt >0 )= 0, if Xt =0

  • Linear holding costs (no shortage)
Page 1 - 10
11
Page 21 - 28
Prof.S.G.Deshmukh & Prof.Arun Kanda