AN APPROACH FOR THE OPTIMAL PRODUCTION RATE OF A SINGLE PRODUCT SYSTEM WITH DYNAMIC DEMANDS

The optimal production rate (production capadty) for a single product system with some deterministic dynamic demands is considered. Under a linear-additivity assumption on the associated cost information, the existence of the optimal solution for production capacity is verified. For the model, two solving techniques (point­ wise computation and L.P. approaches) are developed for both uniilled-demand handling cases of lost-sales and backlOgging, with which example problems are tested to show the superiority of the point-wise computation ap­ proach to L.P. approach.