Technology selection models for multi-stage production systems: Joint application of physical system theory and mathematical programming

In this paper the concepts of physical system theory and mathematical programming are jointly considered to model multi-stage manufacturing systems. Each stage has a number of alternative technologies. The objective of the present modelling approach is to select an appropriate technology at each stage to minimize the total cost of production subject to continuity, and budget constraints. The resulting non-linear 0-1 programming model is linearized and illustrated by a simple three stage (having alternative technologies at each stage) manufacturing example. A goal programming model is also developed and solved.