Common Contracts

Publication agreement

May 24th, 2009

• Filed
  May 24th, 2009

The objective function (1) expresses the minimization of the setup costs, inventory costs at the plant and customers, and transportation costs. Constraint (2) represent the balance among production, inventory and deliveries at the plant, and constraints (3) ensures that the customer demand is fulfilled each period. Constraints (4) limit the production at the plant by the given capacity. Constraints (5) ensure that a setup cost is incurred only if there is production. Constraints (6) and (7) express the commodity conservation flow at the customers and at the plant. Constraints (8) represent the limited vehicle capacity. Constraints (9) impose that, in each period, at most one trip can be made by each vehicle. Constraints (10) ensure that each vehicle returns to the plant at the end of the route. Constraints (11) indicate the type of variables. Inventory levels have a lower and an upper bound.