(A) two-product three-facility production planning model in a combined parallel and serial system

Abstract

This thesis considers a two-product three-facility production planning model. where facility 1 produces product 1 to satisfy its own market requirements and supplies input to facility 2, and facility 2 requires another input from facility 3 (outside supplier). The objective is to determine the optimal production amount in each period in order to satisfy the dynamic demands on time which minimizes the total cost of production and storage in each of the two cases of joint set-up cost and capacity constraints. The joint set-up case problem is formulated as a shortest path network whose nodes correspond to the regeneration points and then a dynamic programming method is applied for its solution search. For the capacity constraints case problem the dominant set corresponding to the set of all extreme points is characterized and a combinatorial solution algorithm based on the dominant set is presented.