Modeling and Solving Production Planning Problem under Uncertainty: A Case Study

Abstract

Data in many real life engineering and economical problems suffer from inexactness. In the real world there are many forms of uncertainty that affect production processes. Uncertainty always exists in practical engineering problems. in order to deal with the uncertain optimization problems, fuzzy and stochastic approaches are commonly used to describe the imprecise characteristics. Herein we assume some intervals in which the data can simultaneously and independently perturb. In this study production planning related data of Al- Araby firm for electric sets in Egypt was collected. A production planning model based on linear programming (LP) was formulated. This formulation based on the outcomes of collected data. The data includes the amount of required and available resources, the demand, the cost of production, the cost of unmet demand, the cost of inventory holding and the revenue. in this work, the objective is to maximize the revenues net of the production, inventory and lost sales costs. The general LP model was solved by using software named Win QSB.