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Dynamic Optimization Production Model in the Multi-Stage of Make to Order Production Strategy

A mathematical model is developed and presented to solve the optimal control problem in matching multi-stages production plan at any point in time. The main purpose of this paper is to investigate the optimal choice between production rate which may affect the inventory level and the optimal production plan at each time through different strategies so as to achieve due date. This method provides a way for decision makers to attend to the best production starting point for any given time point while operating within the best production function. Specifically in deciding whether a manufacturer needs to produce extra quantities for the next batch. Dynamic programming is also shown to be a practical method for the multi-stage optimization involved.