Modeling of production networks
Capacity utilization of
production networks is an important question arising in the context of
supply chain planning.
Motivated by this problem we propose a network model consisting of
partial and ordinary differential equations which is suitable for the
approximation of continuous material flows. We give an idea how to prove
existence of such a network solution and explain reasonable extensions
to adopt the model to real-world
The maximization of
output under certain constraints determined by the equations of the
will be the aim of optimization. We comment on the inclusion of discrete decisions
and present computational results.