Sustainable Multi-Product Seafood Production Planning Under Uncertainty

Abstract

A multi-product fish production planning produces simultaneously multi fish products from several classes of raw resources. The goal in sustainable production planning is to meet customer demand over a fixed time horizon divided into planning periods by optimizing the tradeoff between economic objectives such as production cost, waste processed cost, and customer satisfaction level. The major decisions are production and inventory levels for each product and the number of workforce in each planning period. In this paper we consider the management of small scale traditional business at North Sumatera Province which performs processing fish into several local seafood products. The inherent uncertainty of data (e.g. demand, fish availability), together with the sequential evolution of data over time leads the sustainable production planning problem to a nonlinear mixed-integer stochastic programming model. We use scenario generation based approach and feasible neighborhood search for solving the model.