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.