A linear model for production management—optimal solving policies

Abstract

A linear model for production management considering generic data on stocks, manufacturing processes, resource capacities and costs is presented. Any type of continuous or discrete production process also including assembly and disassembly tasks is taken into account. The model inversion issue is analysed and relevant joint production/inventory management policies are solved by optimising linear and quadratic programs under resource and stock capacity constraints. Beyond the single-period inversion issue that is the focus of the paper, the model is tailored to support multi-period and multi-level planning approaches, the development of which is the subject of separate publications.

Keywords:

• production modelling
• production planning