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| Author: | Moon, S. |
| Title: | A profit-maximizing plant-loading model with demand fill-rate constraints. |
| Journal: | Journal of the Operational Research Society
1989 : NOV, VOL. 40:11, p. 1019-1027 |
| Index terms: | PRODUCT MIX NETWORKS INTEGER PROGRAMMING |
| Language: | eng |
| Abstract: | An algorithm is developed to determine inbound flows, plant product-mix loading, and outbound flows. Fixed charge is assessed when a product-line is assigned to a plant. The production-cost function exhibits concavity with respect to product-line volume. Cost structure captures both scale and scope economies. The problem can be formulated as a concave mixed-integer mathematical programme. Given the state of the art of non-linear programming techniques, it is, however, often not possible to find global optima for such reasonably sized concave problems. For this reason, the plant-loading optimization algorithm problem is formulated as a piecewise linear concave mixed-integer model. |
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