A multi-objective robust optimization model for multi-product multi-site aggregate production planning in a supply chain under uncertainty
Manufacturers need to satisfy consumer demands in order to compete in the real world. This requires the efficient operation of a supply chain planning. In this research we consider a supply chain including multiple suppliers, multiple manufacturers and multiple customers, addressing a multi-site, multi-period, multi-product aggregate production planning (APP) problem under uncertainty. First a new robust multi-objective mixed integer nonlinear programming model is proposed to deal with APP considering two conflicting objectives simultaneously, as well as the uncertain nature of the supply chain. Cost parameters of the supply chain and demand fluctuations are subject to uncertainty. Then the problem transformed into a multi-objective linear one. The first objective function aims to minimize total losses of supply chain including production cost, hiring, firing and training cost, raw material and end product inventory holding cost, transportation and shortage cost. The second objective function considers customer satisfaction through minimizing sum of the maximum amount of shortages among the customers' zones in all periods. Working levels, workers productivity, overtime, subcontracting, storage capacity and lead time are also considered. Finally, the proposed model is solved as a single-objective mixed integer programming model applying the LP-metrics method. The practicability of the proposed model is demonstrated through its application in solving an APP problem in an industrial case study. The results indicate that the proposed model can provide a promising approach to fulfill an efficient production planning in a supply chain.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gunnarsson, Helene & Rönnqvist, Mikael, 2008. "Solving a multi-period supply chain problem for a pulp company using heuristics--An application to Södra Cell AB," International Journal of Production Economics, Elsevier, vol. 116(1), pages 75-94, November.
- David A. Goodman, 1974. "A Goal Programming Approach to Aggregate Planning of Production and Work Force," Management Science, INFORMS, vol. 20(12), pages 1569-1575, August.
- Lodree Jr., Emmett J. & Uzochukwu, Benedict M., 2008. "Production planning for a deteriorating item with stochastic demand and consumer choice," International Journal of Production Economics, Elsevier, vol. 116(2), pages 219-232, December.
- Akif Bakir, M. & Byrne, Mike D., 1998. "Stochastic linear optimisation of an MPMP production planning model," International Journal of Production Economics, Elsevier, vol. 55(1), pages 87-96, June.
- Wu, Desheng & Olson, David L., 2008. "Supply chain risk, simulation, and vendor selection," International Journal of Production Economics, Elsevier, vol. 114(2), pages 646-655, August.
- Fred Hanssmann & Sidney W. Hess, 1960. "A Linear Programming Approach to Production and Employment Scheduling," Management Science, INFORMS, vol. 0(1), pages 46-51, January.
- Kazemi Zanjani, Masoumeh & Ait-Kadi, Daoud & Nourelfath, Mustapha, 2010. "Robust production planning in a manufacturing environment with random yield: A case in sawmill production planning," European Journal of Operational Research, Elsevier, vol. 201(3), pages 882-891, March.
- Dolgui, Alexandre & Ould-Louly, Mohamed-Aly, 2002. "A model for supply planning under lead time uncertainty," International Journal of Production Economics, Elsevier, vol. 78(2), pages 145-152, July.
- Ozdamar, Linet & Bozyel, M. Ali & Birbil, S. Ilker, 1998. "A hierarchical decision support system for production planning (with case study)," European Journal of Operational Research, Elsevier, vol. 104(3), pages 403-422, February.
- Yu, Chian-Son & Li, Han-Lin, 2000. "A robust optimization model for stochastic logistic problems," International Journal of Production Economics, Elsevier, vol. 64(1-3), pages 385-397, March.
- Gebennini, Elisa & Gamberini, Rita & Manzini, Riccardo, 2009. "An integrated production-distribution model for the dynamic location and allocation problem with safety stock optimization," International Journal of Production Economics, Elsevier, vol. 122(1), pages 286-304, November.
- Mazzola, Joseph B. & Neebe, Alan W. & Rump, Christopher M., 1998. "Multiproduct production planning in the presence of work-force learning," European Journal of Operational Research, Elsevier, vol. 106(2-3), pages 336-356, April.
- Nam, Sang-jin & Logendran, Rasaratnam, 1992. "Aggregate production planning -- A survey of models and methodologies," European Journal of Operational Research, Elsevier, vol. 61(3), pages 255-272, September.
- Charles C. Holt & Franco Modigliani & Herbert A. Simon, 1955. "A Linear Decision Rule for Production and Employment Scheduling," Management Science, INFORMS, vol. 2(1), pages 1-30, October.
- Wang, Reay-Chen & Fang, Hsiao-Hua, 2001. "Aggregate production planning with multiple objectives in a fuzzy environment," European Journal of Operational Research, Elsevier, vol. 133(3), pages 521-536, September.
- Leung, Stephen C.H. & Tsang, Sally O.S. & Ng, W.L. & Wu, Yue, 2007. "A robust optimization model for multi-site production planning problem in an uncertain environment," European Journal of Operational Research, Elsevier, vol. 181(1), pages 224-238, August.
- Wang, Reay-Chen & Liang, Tien-Fu, 2005. "Applying possibilistic linear programming to aggregate production planning," International Journal of Production Economics, Elsevier, vol. 98(3), pages 328-341, December.
When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:134:y:2011:i:1:p:28-42. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.