1975
DOI: 10.1287/mnsc.21.7.783
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Production, Inventory and Capacity Expansion Scheduling with Integer Variables

Abstract: The combined production-inventory and capacity expansion problem is modeled as a linear, integer program. The model assumes constant returns to scale in the production function of a firm which must meet, at minimum cost, deterministic demands for a single product over N periods with no backordering. A linear transformation is used to obtain an equivalent form of the model which is then decomposed into fixed cost and variable cost parts. A global optimum is obtained by enumerating on the fixed cost variables an… Show more

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Cited by 4 publications
(3 citation statements)
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References 14 publications
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“…Ref. [14] combines the production-inventory and capacity expansion problem by modeling it as a linear, integer problem. Ref.…”
Section: Related Workmentioning
confidence: 99%
“…Ref. [14] combines the production-inventory and capacity expansion problem by modeling it as a linear, integer problem. Ref.…”
Section: Related Workmentioning
confidence: 99%
“…For this class, Veinott and Wagner also proposed a special algorithm that is more efficient than the linear programming algorithm. Barchi et al formulated an integer programming model to represent a DCEP that involves the determination of both production and expansion plans with no backordering over given horizons. Hiller and Shapiro introduced a mixed-integer linear programming (MILP) model to represent a DCEP with learning effects.…”
Section: Previous Workmentioning
confidence: 99%
“…Unfortunately, the distribution literature is sparse in providing answers [1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16]. The recent literature on capacity planning has primarily dealt with production and inventory capacity expansion scheduling [17,18,19, a notable exception is 20] or the location and number of distribution facilities for an entire distribution system [21,22]. A third subset of the broader capacity planning problem defined by Fetter [23], Veinott and Wagner [24] and others [25,26,27] deals with the determination of the space requirements for individual storage facilities in logistical systems [28].…”
mentioning
confidence: 99%