T | Number of time periods. |
N | Number of products. |
t | Index of time periods. Where. |
| Index of products. Where corresponds to the raw material and to the finished products. |
| Demand for item at period. |
| Unit production cost of finished product in period. |
| Setup cost of finished product in period. |
| Unit holding cost of finished product in period. |
| Available capacity at period t. |
| External demand for item available at period k that should be produced before period t. |
| Initial inventory of item. |
| Launching production of item in period t requires a setup time i from the joint resource. |
| Requires units of the joint resource. |
| represents the aggregate demand in period t, i.e.. Without loss of generality we assume that each of the items has a distinct time window. |