A Parametric Analysis of a Constrained Nonlinear Inventory-production Model

We discuss in this paper some inventory-production models which can be formulated as nonlinear parametric network flow problems with one additional linear constraint. Several sensitivity analysis questions are addressed. The qualitative sensitivity results obtained provide the manager with insight to understanding qualitatively how to respond to changes in the environment such as production costs, inventory capacity, external demand, machine break-down, strike, or variations in inventory carrying cost without additional computation.