A transportation type aggregate production model with bounds on inventory and backordering
Author
Erenguc, S. S.
Tufekci, S.
Date
1988Source Title
European Journal of Operational Research
Print ISSN
0377-2217
Publisher
Elsevier
Volume
35
Issue
3
Pages
414 - 425
Language
English
Type
ArticleItem Usage Stats
167
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200
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Abstract
We consider a certain T period aggregate production planning model, where the two sources of production are regular and overtime. The model allows for time varying production, holding and backordering costs and includes bounds on inventory and backorders. We show that the problem has a rather interesting network structure and exploit this structure to develop a greedy algorithm to solve the problem. The procedure is easy to implement and has a computational complexity of O(T2). We report computational experience with the greedy procedure and demonstrate its superiority to a well known network simplex code, Gnet, implemented on the classical network formulation of the problem. © 1988.