Abstract
An operational research project at the Oskarshamn plant of Saab Scania AB Truckdivision Sweden is reported. The decision problem concerns the product mix of sheet metal purchased. A mathematical model that approximates the real-world problem is derived, the solution of which includes a p-median problem. This optimization problem is solved using Lagrangean relaxation and a subgradient optimization procedure. Numerical results for problems of real-world size and structure are reported and indicate satisfactory efficiency.
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