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Deterministic Production Planning with Concave Costs and Capacity Constraints

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  • Michael Florian

    (University of Montreal)

  • Morton Klein

    (Columbia University)

Abstract

A multi-period single commodity production planning problem is studied in which known requirements have to be satisfied. The model differs from earlier well-known studies involving concave cost functions in the introduction of production capacity constraints. The structure of an optimal solution is characterized and then used in a simple dynamic programming algorithm for problems in which the capacities are the same in every period. Both the nonbacklog and backlog allowed cases are considered.

Suggested Citation

  • Michael Florian & Morton Klein, 1971. "Deterministic Production Planning with Concave Costs and Capacity Constraints," Management Science, INFORMS, vol. 18(1), pages 12-20, September.
  • Handle: RePEc:inm:ormnsc:v:18:y:1971:i:1:p:12-20
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    File URL: http://dx.doi.org/10.1287/mnsc.18.1.12
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