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    Economic production quantity under possible substitution: a scenario analysis approach

    , Article International Journal of Industrial Engineering and Production Research ; Volume 33, Issue 1 , 2022 ; 20084889 (ISSN) Mokhtari, H ; Salmasnia, A ; Fallahi, A ; Sharif University of Technology
    Iran University of Science and Technology  2022
    Abstract
    This paper designs a Scenario analysis approach to determine the joint production policy for two products under possible substitution. The Scenario analysis is designed to improve decision-making by considering possible outcomes and their implications. The traditional multi-product production models assume that there is no possible substitution between products. However, in real-world cases, there are many substitutable products where substitution may occur in the event of a product stock-out. The proposed model optimizes production quantities for two products under substitution with the aim of minimizing the total cost of the inventory system, including setup and holding costs, subject to a...