A Study for Multistage, Multiproduct Production Planning with Concave Costs

Abstract

This paper is concerned with ,the multistage, multiproduct production planning model with concave production, inventory and conversion costs. This model does not allow backlogging. This model considers that products require the same raw material at the first stage of production and that the flow is possible among different products. In order to obtain optimal solution, 0-1 integer formulation, Lagrangian relaxation, and branchand- bound methodology are suggested. In this approach the special structure of the problem is exploited effectively.