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Tactical production planning in a hybrid Make-to-Stock-Make-to-Order environment under supply, process and demand uncertainties: a robust optimisation model

Khakdaman, Masoud and Wong, Kuan Yew and Zohoori, Bahareh and Tiwari, Manoj Kumar and Merkert, Rico (2015) Tactical production planning in a hybrid Make-to-Stock-Make-to-Order environment under supply, process and demand uncertainties: a robust optimisation model. International Journal Of Production Research, 53 (5). pp. 1358-1386. ISSN 0020-7543

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Official URL: http://dx.doi.org/10.1080/00207543.2014.935828

Abstract

In this paper, we consider a hybrid Make-to-Stock-Make-to-Order environment to develop a novel optimisation model for medium-term production planning of a typical multi-product firm based on the competencies of the robust optimisation methodology. Three types of uncertainties: Suppliers, processes and customers, are incorporated into the model to construct a robust practical model in an uncertain business environment. The modelling procedure is started with applying deterministic linear programming to develop a new multi-objective approach for the combination of multi-product multi-period production planning and aggregate production planning problems. Then, the proposed deterministic model is transformed into a robust optimisation framework and the solution procedure is designed according to the Lp-Metric methodology. Next, using the IBM ILOG CPLEX optimisation software, the proposed model is evaluated by applying the data collected from an industrial case study. Final results illustrate the applicability of the proposed model.

Item Type:Article
Uncontrolled Keywords:aggregate production planning, make-to-order, make-to-stock, multi-product multi-period production planning, robust optimisation, uncertainty
Subjects:A General Works
ID Code:58880
Deposited By: Haliza Zainal
Deposited On:04 Dec 2016 12:07
Last Modified:20 Sep 2017 15:24

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