and appropriate levels of stock on hand are chosen by employees of the company.
In the model written by the formulas (1) to (5) two groups of decision-making variables
xijk and zmax were used. The first group are binary variables which task is to
ascribe operation j manufacturing a series of half-finished and finished products i
on the machine k. The variable has the value 1 if an according operation is carried
out on the machine, or 0 otherwise. The list of series i is generated, on the basis of
production plans and the size of series of given half-finished products, before the
operational research process starts. Another group is a variable zmax which can have
any real values. For the positive values it is interpreted as the highest exceeding of
machine’s capacity, whereas negative values correspond to the lowest reserve of the
machine’s capacity