A Two-Product Three-Facility Production Planning Model in a Combined Parallel and Serial System

This paper considers a two-product three-facility production planning model, where facility 1 produces product 1 to satisfy its own market requirements and supplies input to facility 2, and facility 2 requires another input from facility 3 (outside supplier). The objective is to determine the optimal production amount in each period in order to satisfy the dynamic demands on time, which minimizes the total cost of production and storage. The set-up cost is incurred jointly from the multi-facility operations.