Question: ( Inventory Management - Part 2 ) Consider the following mathematical programming model for a singleproduct dynamic lot - sizing problem of N periods. Minimize
Inventory Management Part Consider the following mathematical programming model for a singleproduct dynamic lotsizing problem of periods.
Minimize
Subject for
for dots,
for dots,
where is sufficiently large positive number
a Based on the following changes on the existing parameters, additional parameters and restrictions, reconstruct modify the above model.
The ordering setup cost in the periods may vary from one period to another.
The unit purchasing cost in the periods may vary from one period to another.
Backordering is allowed in all periods, except the last period.
Backordering cost per unit per period is
The backorder quantity in a period can be at most percent of the cumulative demand for this period.
Maximum number of units that can be ordered lot size in each period is
b Construct a period example problem. Using the reconstructed model in part a solve your period problem by GAMS.
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