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A Parametric Analysis of a Constrained Nonlinear Inventory-production Model

Author

Listed:
  • Antoine Gautier

    (Faculté des Sciences de l'Administration, Université Laval, Québec City, Québec, Canada G1K 7P4)

  • Frieda Granot

    (Faculty of Commerce and Business Administration, The University of British Columbia, Vancouver, British Columbia, Canada V6T 1Z2)

Abstract

We discuss in this paper some inventory-production models which can be formulated as nonlinear parametric network flow problems with one additional linear constraint. Several sensitivity analysis questions are addressed. The qualitative sensitivity results obtained provide the manager with insight to understanding qualitatively how to respond to changes in the environment such as production costs, inventory capacity, external demand, machine break-down, strike, or variations in inventory carrying cost without additional computation.

Suggested Citation

  • Antoine Gautier & Frieda Granot, 1994. "A Parametric Analysis of a Constrained Nonlinear Inventory-production Model," Management Science, INFORMS, vol. 40(11), pages 1500-1513, November.
    • Handle: RePEc:inm:ormnsc:v:40:y:1994:i:11:p:1500-1513
    DOI: 10.1287/mnsc.40.11.1500
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