| Nomenclature |
| ||
| Index set | Dimension | Unit | Definition |
| s є S | {s} | - | Supplier |
| p є P | {p} | - | Production plant |
| r є R | {r} | - | Distribution center |
| c ϵ C | {c} | - | Customer |
| t ϵ T | {T} | - | Time period, t = 1, 2, 3, …, n |
| f ϵ F | {F} | - | Type of raw material, f = 1, 2, 3, ..., n |
| g ϵ G | {G} | - | Type of product, e.g., Product g |
| General data |
| Definition | |
| RMC | {s} | $/unit | Raw material cost of product g |
| BOM | {p} | unit | Bill of raw material, BOM. Amount of raw material needed to make g |
| MIC | {p} | unit | Maximum inventory capacity of plant p |
| MRC | {r} | unit | Maximum inventory capacity of distribution center r |
| Decision Variables |
| Definition | |
| BQ | {s} | unit | Purchase quantity of raw material f from supplier s in time period t |
| PQ | {p} | unit | Manufacturer product quantity of g from plant p in time period t |
| ILR | {p} | unit | k’th inventory level of raw material remain in plant p in time period t |
| ILG | {p} | unit | k’th inventory level of finished product g in plant p in time period t |
| IL | {p} | unit | Inventory level of plant p which keep raw material and finished product g in time period t |
| IR | {r} | unit | k’th inventory level of distribution center r in time period t |
| PR | {p} | unit | Quantity of product g shipped from plant p to distribution center r in time period t |
| PE | {r} | unit | Quantity of product g shipped from retailer r to customer c in time period t |
| DB | {p} | unit | Quantity of demand backlog in plant p in time period t |