Manufacturing-to-Sale Planning Model for Fuel Oil Production

Abstract

The fuel oil refinery production industry in Taiwan has entered a completely competitive free open market. In such an environment there exist a variety of uncertain factors, and a traditional production planning model will not be able to deal with the new situation. This study develops a responsive and flexible manufacturing-to-sale planning system to deal with uncertain manufacturing factors. The major objective of this study is to model the problem of the uncertain nature faced by the Chinese Petroleum Corporation (CPC) and to establish a manufacturing-to-sale planning model for solving the problem. A linear programming technique is suggested for developing the optimal strategy for use in production plans. Fuzzy theory is adopted for dealing with demand/cost uncertainties. A possibilistic linear programming model is thus formulated in this study. The possible uncertain fluctuations on demand/cost are included in the model. Therefore, the strategy for creating maximum profit for the company can be obtained via the proposed modelling procedures.