Multiproduct Production Scheduling for Style Goods With Limited Capacity Foreca

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Multiproduct Production Scheduling for Style Goods With Limited Capacity Foreca
Warren H Hausman
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If any of these optimal values is less than current inventory then, based on the convexity cited earlier, production for that product should be fixed at zero and the trial-and-error process of varying X should be repeated. Also, if X is negative then it should be set at zero, since in that case capacity is not a binding - 16 - constraint. Unfortunately, it is not possible to solve previous -period decisions optimally, for the reasons cited earlier.
V. THREE HEURISTIC APPROACHES TO THE MULTIPROD
...UCT CASE Introduction In the multiproduct case the optimal decision in the last period is given by (14), that is, the constrained newsboy decision rule. Optimal decisions for earlier periods are computationally infeasible, however. Three heuristics are now considered, each of which is a variation on the basic constrained newsboy theme. From this point of view, the heuristics extend previous work done on related problems ([4], [8], [14], [15]).
Heuristic 1 (H-1) The mathematical intractability can be overcome easily if one is willing for the moment to ignore the future production opportunities (beyond the current period) and the corresponding forecast revisions inherent in the problem.


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