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Consider a multi-stage assembly system for a single product, where at the end of the final stage, finished products are ready to serve the customer demand, and the first stage starts with procurement of necessary raw materials. Figure 1: Example assembly system with multiple stages The product has a number.of bill-of-material alternatives. Bill-of-material (BOM) is the recipe of a product, which includes all components and materials needed at every stage to create a product. Depending on the production capacities, costs, and material availability, the manufacturer may choose to use any of the alternative BOMs in any period. We would like to solve the problem with a finite planning horizon which is divided into discrete time periods. For each period, the customer demand, the production capacities, the fixed and variable production costs, and inventory holding costs at every stage are known. For each period and for each stage we would like to determine optimal production and procurement quantities that would minimize the total cost of the system. Model the problem as a mixed integer linear program. Clearly indicate all problem parameters, sets and decision variables