Finite capacity flow control in a multi-stage/multi-product environment

Hierarchical Production Management uses different decision levels and handles a different model at each of these levels. The model of the top level leads usually to a continuous flow control problem under finite capacities. Here the authors study the problem of minimizing in-process inventory cost under finite capacity constraints and for a continuous time varying demand. The multi-product problem is examined. They finally propose a numerical application to illustrate the analytical results.