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Production Planning Problem

In: Decision Making and Performance Evaluation Using Data Envelopment Analysis

Author

Listed:
  • Dariush Khezrimotlagh

    (Penn State Univeristy)

  • Yao Chen

    (University of Massachusetts at Lowell)

Abstract

Production in large firms with a centralized decision-making unit usually involves the contribution of several individual units. Supermarket chains or organizations with several workshops include more than one unit in which each unit contributes to a part of the entire production. For example, a sales plan is decided by a bank’s cooperate management for its divisions regarding the number of credit cards to be issued and the number of loans to be processed. The central division defines a plan to optimize the average or overall production performance in the entire organization after planning. In this chapter, a production-planning problem which is regularly faced by the central decision-making units is illustrated. Two planning ideas, proposed by Du et al. (2010), are discussed to arrange new input and output plans for all specific units when demand deviations can be predicted.

Suggested Citation

  • Dariush Khezrimotlagh & Yao Chen, 2018. "Production Planning Problem," International Series in Operations Research & Management Science, in: Decision Making and Performance Evaluation Using Data Envelopment Analysis, chapter 0, pages 251-288, Springer.
    • Handle: RePEc:spr:isochp:978-3-319-76345-3_9
    DOI: 10.1007/978-3-319-76345-3_9
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