Integrating distribution, machine assignment and lot-sizing via Lagrangean relaxation

Article Abstract:

The Lagrangean decomposition techniques show competency and appropriateness in dealing with problems associated with production planning levels in make-to-stock manufacturing systems. The decomposition schemes, together with mathematical programming, present an appropriate outline that analyzes complex coordination problems. This computational analysis deals with production volumes allocation for different manufacturing facilities, production quantity assignment for alternative technologies and production lot determination for each type of machine.

Usage, Optimization theory, Lagrangian functions, Mathematical programming, Decomposition method

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Technological progress and optimal factor demand

Article Abstract:

A model was developed to test the effects of technological progress in the dynamic production planning of a value maximizing firm. It was developed along the optimal control problem, with investment and employment demand as factors. Results of the modeling showed that technological progress makes investments less sensitive to the changes in market price of investment goods and makes both factors less sensitive to changes in cross prices.

Technological innovations, Economic indicators, Industrial productivity, Production (Economics)

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