| Article ID: | iaor19961149 |
| Country: | Netherlands |
| Volume: | 41 |
| Issue: | 1/3 |
| Start Page Number: | 273 |
| End Page Number: | 280 |
| Publication Date: | Oct 1995 |
| Journal: | International Journal of Production Economics |
| Authors: | Molinder Anders |
| Keywords: | aggregate planning |
The production problem of balancing inventory and production costs in a continuous-time production model was first analyzed by Arrow and Karlin. An extension of their model is discussed where overtime and hiring-firing costs are considered. In this paper an application of calculus of variations leads to the consideration of the Euler-Lagrange equations combined with Karush-Kuhn-Tucker conditions.