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The model of this paper results in a near-optimal solution to a production, inventory, and work-force planning problem where the number of items is large compared to the number of facilities and time periods in the planning horizon. It extends the work of Dzielinski and Gomory3 to assembly production. Based on the product structures, constraints are generated to maintain the precedence relations among items and solution methods are discussed. Dantzig-Wolfe decomposition is applied to the program and it is noted that generalized upper bounding may also be used. A suboptimal procedure that does a level-by-level óptimization is presented, and it may be satisfactory in many applications. The optimal procedure involves a consideration of all levels simultaneously.
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