Article ID: | iaor20032276 |
Country: | United States |
Volume: | 33 |
Issue: | 3 |
Start Page Number: | 317 |
End Page Number: | 346 |
Publication Date: | Jul 2002 |
Journal: | Decision Sciences |
Authors: | Wagner Bret J., Kher Hemant V., Davis Darwin J. |
Keywords: | programming: mathematical |
In this paper we extend the economic lot sizing for production (ELSP) model to allow for linearly changing demand rates over a fixed planning horizon. This extension of the ELSP research provides a model that can be used in coordinating the production and marketing planning activities in a firm. The model allows the user to evaluate the impact of changes in product demand on production costs and customer service. We solve the model using a standard nonlinear programming package and show through examples based on actual production data how the model can be used to support coordinated production and marketing planning.