Developing an Add-in Decision Model for Collaborated Production Planning in Enterprise Resource Planning Systems

Abstract

ERP systems can provide a platform for the integration of plant and enterprise resource allocation, planning, and management. Currently available systems in the market are yet fairly simplistic that results in serious inherent weaknesses in practice. For example, the planning parameters are arbitrarily selected, fixed, and rarely validated, and production capacity is assumed unlimited in typical system settings and implementation of ERP systems. In this paper, an add-in decision model is developed that closes the gap between the static parameter settings in production planning and dynamic nature in the marketplace. The proposed model jointly considers the production schedule, lot-size and the periodic pricing in a dynamic environment that makes the back-end production decision more responsive to the front-end changing market. Further, the model takes limited capacity into account which remedies the traditional ERP system settings.