Notation | Description |
n | Periodic intervals |
C | Cost |
| Price |
| Production capacity per unit of product p |
| Unit p product demand for m components |
| The available production capacity of an assembly plant in the t period |
| The ordering cost of components ordered by the assembly plant at time t from supplier s of m components |
| The unit cost for the assembly plant to produce product p during time t |
| The forecast demand for p product by r grade customers in l area during the marketing session |
| The unit price of product p supplied by the assembly plant to r grade customers in region l during time period t |
| The assembly plant purchases the unit price of components from s supplier of m components in time period t |
| The maximum supply of s supplier of m component in time period t |
| Initial inventory of assembly plant m components |
| An assembly plant stores the unit cost of m components for a period of time |
| An assembly plant stores the unit cost of p products for a period of time |
| Unit cost of transportation of product p from the assembly plant to area l |
Superscript: |
|
m | Represent component |
p | Represent product |
o | Represent order cost |
c’ | Represent production capacity |
h | Represent inventory cost |
d | Represent transportation cost |
Sets: |
|
S | A set of suppliers, |
M | Component types, |
P | Product type, |
T | Period set, , , |
R | Customer rating, |
L | A set of region, |
Decision variables: |
|
| Initial inventory of assembly plant m components in time period t |
| The assembly plant’s ending inventory of components m at time t |
| Initial inventory of p product in time period t |
| The assembly plant’s ending inventory of product p in time period t |
| The number of components the assembly plant purchases from s supplier of m components in time period t |
| The number of p products produced by the assembly plant in time period t |