Linear programming model
The following is a linear programming model for the production planning problem. The decision variables for this problem are as follows:
xij : total number of product j produced during week i,
Iij : total amount of product j in inventory at the end of week i,
Where,
hij : unit holding cost of product j during week i,
dij : demand for product j during week i,
cij : unit production cost of product j during week i,
j : capacity usage coefficient for product j,
: production (assembling) capacity,
: testing equipment capacity.
Minimize the total costs and production and inventory holding costs.