Plant Equipment Package (PEP) Modernization Program. Volume 7. PEP Economic model.

摘要

The PEP economic model assigns production to the PEP lines to satisfy mobilization requirements at a minimum cost. The model analyzes the tradeoff between each lines's inventory costs and modernization costs in selecting existing lines or their modernized counterparts to operate during mobilization. The least costly combination of lines is selected. The technique of mixed-integer linear programming, a standard procedure for solving cost optimization problems, was adapted to the PEP modernization problem. The objective of the linear model is to minimize the total system cost composed of inventory, production and modernization costs. (Author)