Including Capacity Limitations in Planning Models

IIn Chapter 5, the systems we study have production capacities in their manufacturing activities. Following some introductory mathematical concepts, we explore what we call the No B/C production policy and show the consequences of deploying this strategy in an industrial environment. The models developed and studied in Chapters 4 and 5 are planning models. They are used to establish inventory targets for each item in each location in a supply chain. The models are usually based on assumptions such as first-come, first-serve replenishment rules in multi-echelon environments. Demand processes are assumed to be stationary.