| 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 |