4822
2013
eng
536
541
conferenceobject
Universitätsverlag der TU Berlin
Berlin
0
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Production Planning for Non-Cooperating Companies with Nonlinear Optimization
We consider a production planning problem where two competing companies are selling their items on a common market. Moreover, the raw material used in the production is a limited non-renewable resource. The revenue per item sold depends on the total amount of items produced by both players. If they collaborate they could apply a production strategy that leads to the highest combined revenue. Usually the formation of such syndicates is prohibited by law; hence we assume that one company does not know how much the other company will produce. We formulate the problem for company A to find an optimal production plan without information on the strategy of company B as a nonlinear mathematical optimization problem. In its naive formulation the model is too large, making its solution practically impossible. After a reformulation we find a much smaller model, which we solve by spatial branch-and-cut methods and linear programming. We discuss the practical implications of our solutions.
11th Global Conference on Sustainable Manufacturing : Proceedings
yes
urn:nbn:de:0297-zib-18163
Armin Fügenschuh
Ingmar Vierhaus
Roel van Veldhuizen
Ingmar Vierhaus
Mathematical Optimization
Fügenschuh, Armin
CRC1026