Computation for the Redistribution Model with Set-Up Charge

Published Online:https://doi.org/10.1287/mnsc.8.4.482

A systematic computation procedure is given for determining redistribution of stock among several user activities when set-up charges are involved. The procedure is divided into two phases, the first of which determines whether any redistributions should be made at all. Then the second phase determines the total amount to be shipped or received at each activity.

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