Models for Integrated Production Planning and Order Selection

The vast body of literature on dynamic requirements planning problems in make-to-order production systems assumes that demands in all periods are predefined. In many practical contexts, however, a producer has discretion to accept or deny production orders during the production planning process. That is, given a set of orders for production at a single stage in a set of time periods, along with fixed plus linear production costs and variable holding costs in every period, the producer must determine the most profitable set of orders to fulfill. We provide models that address these integrated production planning and order selection decisions.