is the quantity of product 
prepared at period t.
is the inventory level 
at the end of period t and
a binary variable. Which takes the value 1 if there is a setup of 
in t and 0 otherwise (
only if
).
|
| is the quantity of product |
|
| is the inventory level |
|
| a binary variable. Which takes the value 1 if there is a setup of |