General Planning Horizons for the Production Smoothing Problem with Deterministic Demands. I. All Demand Met from Regular Production.
Abstract
In part 1 of the paper, the authors develop an algorithm for finding planning horizons for the deterministic production smoothing problem when all demand must be met from regular Production, under rather general assumptions for the production, production smoothing, and holding cost functions. (In part 2 of this paper, planning horizons will be developed for extensions of the model including backlogging and overtime). The techniques developed here are essentially forward-looking and marginal-cost-balancing in nature, rather than total-cost-minimizing and backward-looking in nature such as dynamic programming, or total-cost-minimizing and omni-looking in nature such as linear programming. The fact that planning horizons are shown here to exist for a range of discount values both greater and less than one illustrates that the methods used here are in fact fundamentally different from ordinary infinite horizon dynamic programming methods. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1971
- Accession Number
- AD0736983
Entities
People
- Howard C. Kunreuther
- Thomas E. Morton
Organizations
- Carnegie Mellon University