Designing of Integrated Tactical Production-Quality Planning in a Rolling Horizon Under Demand Uncertainty: Case Study in the Automotive Wire Harness Industry

Abstract

To minimize waste and scrap, reworking becomes an integral part of many manufacturing companies. In this study, the integrated production-quality planning in the tactical horizon considering the customer demand uncertainty is presented. A mixed-integer programming model is developed to find optimal dynamic planning production which minimizes costs and reduces the scrap. After each production cycle, the quality indicators and relative costs for good and poor quality are performed. These indicators are introduced into the developed model to determine the optimal production orders and stock levels considering the reworked and scrapped products. A real case study is presented to illustrate the applicability of the proposed model. By comparing the obtained results with real results from studied company, we proved that this new model gives an optimal production plan.