A Mathematical Programming Production Model with Nonadditive Common Costs

Abstract

One of the major underlying assumptions of linear programming is the assumption of additivity. In developing a production model, it was found that this assumption was not realistic. Certain production costs, called common costs, were not additive. Ignoring these nonlinearities could give a solution far from the optimum. However, by the use of some simple transformations, this nonlinear programming problem was transformed into a linear programming problem