| Article ID: | iaor1990100 |
| Country: | Netherlands |
| Volume: | 42 |
| Issue: | 2 |
| Start Page Number: | 142 |
| End Page Number: | 151 |
| Publication Date: | Sep 1989 |
| Journal: | European Journal of Operational Research |
| Authors: | Krauth J., Warschat J. |
| Keywords: | inventory |
A simple model of a production process for two different products is analyzed. The goal is to minimize production and inventory costs. Conditions for the optimality of simultaneous and separate production are given. Variations of the parameters yield convex and nonconvex Hamiltonians and substantially different solutions. Two examples illustrate the results.