On the stochastic non-sequential production-planning problem

This paper examines a stochastic non-sequential capacitated production-planning problem where the demand of each period is a continuous random variable. The stochastic non-sequential production-planning problem is examined with sequence-independent and then with sequence-dependent set-up costs, and the worst-case error determined when an approximate solution is obtained by solving the deterministic equivalent. The authors prove in general that the worst-case error is not dependent on the nature of the set-up cost, and identify a family of approximations for the stochastic non-sequential production-planning problem.