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