Lot-sizing decisions for material requirements planning with hybrid uncertainties in a smart factory

Abstract

Material requirements planning (MRP) is a kind of medium-term production planning, which aims to plan the end item requirements of the master production schedule over a finite planning horizon. In a smart factory, the customer requirements and the production status are varying in time, which increases the uncertainties in making lot-sizing decisions for MRP. In this study, a hybrid chance-constrained programming (HCCP) model is developed for solving an MRP problem with hybrid uncertainties, in which both randomness and fuzziness exist in a lot-sizing decision process. The objective of the HCCP model is to determine the lot sizes of all items while satisfying the stochastic demands and the fuzzy capacity constraints. The credibility and probability are incorporated into the proposed model to measure the fuzziness and randomness, respectively. In order to solve the model, relevant approaches for converting the probability-based and credibility-based constraints into the equivalent deterministic forms are proposed. Decision makers can set different confidence levels according to their own risk preferences to get different results. Finally, an example is presented to verify that the approach proposed in this paper is feasible for solving MRP problems with hybrid uncertainties.