| Summary: | 碩士 === 國立交通大學 === 資訊管理所 === 90 === This paper purposes a mathematical programming model that can perform inventory control and capacity expansion. It improves the supply chain linear model developed by Li et al. and also refines the solution approach of the capacity constraint addressed by Rajagopalan et al.. There are two advantages in our research: first, it involves demand forecast, purchase, production, transportation and sale, and integrates inventory management and capacity expansion decisions. Second, we use an effective linearization strategy to translate the non-linear capacity constraint into a linear 0-1 problem, which can be proved to obtain a global optimal solution.
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