Supply Chain And Finance: Series on Computers and Operations Research, Vol. 2

Phase III: Attempt to increase production in under-utilized periods

  • 0) Create a new list for each period of all profitable orders not fulfilled. Each list is indexed in non-increasing order of per-unit profitability, as defined earlier. Let j denote the first production period.

  • 1) If j = T + 1, STOP with a feasible solution. Otherwise, continue.

  • 2) If C p(j) > X p(j), excess capacity exists in period p(j). Choose the next most profitable order from period j, and let m* denote the order index for this order. Let d m*, p(j),j = min { d m*,j, C p(j) X p(j)}, and assign an additional d m*,p(j),j to production in period p(j).

  • 3) If there is remaining capacity and additional profitable orders exist for period j, the repeat Step 2. Otherwise, set j = j + 1 and return to Step 1.

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