Abstract
The Multi-Period Multi-Product (MPMP) production planning, as a well known problem in literature, attempts to match production rates of individual products with fluctuated market demand over planning horizon. This study, demonstrates how the conventional MPMP Linear Programming (LP) model may fail to utilize available capacity of machines, and also a novel Multi Objective Linear Programming (MOLP) model is developed to simultaneously minimize net present value of production costs and maximize machine utilization. The proposed model consists of production constraints such as available labor, inventory, maximum subcontracting levels and also forecasted demands. The proposed MOLP model is further converted to a Fuzzy Multi Objective Linear Programming (FMOLP) model utilizing piecewise linear membership functions. The model, accommodates the Decision Maker (DM) with a more systematic decision making approach enabling the DM to adjust the search direction during the solving procedure to achieve the most satisf...
Highlights
The standard Multi-Period Multi-Product (MPMP) problem in production planning environment attempts to determine production rates of individual products in each period and have been increasingly focused by both practitioners and academicians (Hanssmann & Hess1; Bakir & Byrne2; Wang & Liang3; Feylizadeh et al.4)
Existence of a reliable and stable production planning system is crucial in order to adjust production rates to available resources and market demand
This study addresses production planning of multiple products over multi period planning horizon, where aspiration levels of objectives and parameters are not precisely known and depend on expert judgments
Summary
The standard MPMP problem in production planning environment attempts to determine production rates of individual products in each period and have been increasingly focused by both practitioners and academicians (Hanssmann & Hess; Bakir & Byrne; Wang & Liang; Feylizadeh et al.). In most practical production planning cases, different conflicting objectives may be arisen including minimizing total production costs, inventory investment, changes in production rates, changes in work force levels as well as maximizing profit, customer satisfaction, and utilization of plant and equipments. In most practical production planning cases, different conflicting objectives may be arisen including minimizing total production costs, inventory investment, changes in production rates, changes in work force levels as well as maximizing profit, customer satisfaction, and utilization of plant and equipments6 These conflicting objectives are required to be optimized through a simultaneous analyzing system where DM’s judgments regarding priority and importance of each objective can be considered. The original MOLP model attempts to simultaneously minimize net present value of total production, carrying and backordering costs, rate of changes in labor levels, and maximizes machine utilization subject to available inventory capacity, resource levels.
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