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Multiple prices and De Novo Programming

Optimization of production program is one of the crucial problems of optimization. For that purpose different methods and procedures were developed in order to present the decision maker with solutions which can provide the maximal realization of his aims. These various methods and procedures were mainly looking for solutions in accordance with the previously defined resources and constraints. In real production planning situations linear programming models may be difficult to apply because of its assumption of proportionality. One common phenomenon is multiple pricing of raw materials because companies may have more than one source of raw material at different costs, or quantity discounts being offered for purchases.

Multiple prices; raw materials; De Novo Programming

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