Notation

Description

n

Periodic intervals

C

Cost

P

Price

u p ( c )

Production capacity per unit of product p

u p m ( m )

Unit p product demand for m components

C t

The available production capacity of an assembly plant in the t period

C t m s ( o )

The ordering cost of components ordered by the assembly plant at time t from supplier s of m components

C t p ( p )

The unit cost for the assembly plant to produce product p during time t

Q τ l r p ( p )

The forecast demand for p product by r grade customers in l area during the marketing session

P t l r p ( p )

The unit price of product p supplied by the assembly plant to r grade customers in region l during time period t

P t m s ( m )

The assembly plant purchases the unit price of components from s supplier of m components in time period t

U t m s ( m )

The maximum supply of s supplier of m component in time period t

I m ( m )

Initial inventory of assembly plant m components

C m ( h )

An assembly plant stores the unit cost of m components for a period of time

C p ( h )

An assembly plant stores the unit cost of p products for a period of time

C l p ( d )

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, s { 1 , 2 , 3 , , S 0 } = S

M

Component types, m { 1 , 2 , 3 , , M 0 } = M

P

Product type, p { 1 , 2 , 3 , , P 0 } = P

T

Period set, T = { 1 , 2 , 3 , , T 0 } , t T , τ T

R

Customer rating, r { 1 , 2 , 3 , , R 0 } = R

L

A set of region, l { 1 , 2 , 3 , , L 0 } = L

Decision variables:

B t m ( m )

Initial inventory of assembly plant m components in time period t

E t m ( m )

The assembly plant’s ending inventory of components m at time t

B t p ( p )

Initial inventory of p product in time period t

E t p ( p )

The assembly plant’s ending inventory of product p in time period t

Q t m s ( m )

The number of components the assembly plant purchases from s supplier of m components in time period t

Q t p ( p )

The number of p products produced by the assembly plant in time period t