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Univariate Clearing Functions

In: Production Planning with Capacitated Resources and Congestion

Author

Listed:
  • Hubert Missbauer

    (University of Innsbruck)

  • Reha Uzsoy

    (North Carolina State University)

Abstract

In this chapter, we introduce the concept of the clearing function (CF), a metamodel of a production resource that relates the expected output of a resource to some measure of the work available to it in the planning period. We focus on clearing functions with a single state variable and examine a variety of functional forms that have been proposed in the production and traffic literature. We then formulate release planning models using these functions and show that while single-product models yield tractable convex optimization problems, the presence of multiple products competing for capacity at a shared resource creates significant difficulties. The allocated clearing function formulation is presented to address these issues and shown to yield more informative dual prices for resource capacity than conventional LP models.

Suggested Citation

  • Hubert Missbauer & Reha Uzsoy, 2020. "Univariate Clearing Functions," Springer Books, in: Production Planning with Capacitated Resources and Congestion, chapter 0, pages 143-189, Springer.
    • Handle: RePEc:spr:sprchp:978-1-0716-0354-3_7
    DOI: 10.1007/978-1-0716-0354-3_7
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