Document Type : Research Paper

Authors

Department of Industrial and Production Engineering, Jashore University of Science and Technology, Jahsore, Bangladesh.

Abstract

In this paper, an optimization model for aggregate planning of multi-product and multi-period production system has been formulated. Due to the involvement of too many stakeholders as well as uncertainties, the aggregate production planning sometimes becomes extremely complex in dealing with all relevant cost criteria. Most of the existing approaches have focused on minimizing only production related costs, consequently ignored other cost factors, for instance, supply chain related costs. However, these types of other cost factors are greatly affected by aggregate production planning and its mismanagement often results in increased overall costs of the business enterprises. Therefore, the proposed model has attempted to incorporate all the relevant cost factors into the optimization model which are directly or indirectly affected by the aggregate production planning. In addition, the considered supply chain related costs have been segregated into two major categories. While the raw material purchasing, ordering, and inventory costs have been grouped into an upstream category, finished goods inventory, and delivery costs in the downstream category. The most notable differences with the other existing models of aggregate production planning are in the consideration of the cost factors and formulation process in the mathematical model. A real-life industrial case problem is formulated and solved by using a genetic algorithm to demonstrate the applicability and feasibility of the proposed model. The results indicate that the proposed model is capable of solving any type of aggregate production planning efficiently and effectively. 

Keywords

[1]       Gansterer, M. (2015). Aggregate planning and forecasting in make-to-order production systems. International journal of production economics, 170, 521-528.
[2]       Kumar, G. M., & Haq, A. N. (2005). Hybrid genetic—ant colony algorithms for solving aggregate production plan. Journal of advanced manufacturing systems, 4(01), 103-111.
[3]       Al-e, S. M. J. M., Aryanezhad, M. B., & Sadjadi, S. J. (2012). An efficient algorithm to solve a multi-objective robust aggregate production planning in an uncertain environment. The international journal of advanced manufacturing technology, 58(5-8), 765-782.
[4]       Dakka, F, Aswin, M., & Siswojo, B. (2017). Multi-Plant multi-product aggregate production planning using genetic algorithm. International journal of engineering research and management, 4, 2349- 2058.
[5]       Swinney, R. (2011). Selling to strategic consumers when product value is uncertain: The value of matching supply and demand. Management science, 57(10), 1737-1751.
[6]       Fahimnia, B., Farahani, R. Z., Marian, R., & Luong, L. (2013). A review and critique on integrated production–distribution planning models and techniques. Journal of manufacturing systems, 32(1), 1-19.
[7]       Entezaminia, A., Heydari, M., & Rahmani, D. (2016). A multi-objective model for multi-product multi-site aggregate production planning in a green supply chain: Considering collection and recycling centers. Journal of manufacturing systems, 40, 63-75.
[8]       Modarres, M., & Izadpanahi, E. (2016). Aggregate production planning by focusing on energy saving: A robust optimization approach. Journal of cleaner production, 133, 1074-1085.
[9]       Makui, A., Heydari, M., Aazami, A., & Dehghani, E. (2016). Accelerating benders decomposition approach for robust aggregate production planning of products with a very limited expiration date. Computers & industrial engineering, 100, 34-51.
[10]   Hsieh, S., & Wu, M. S. (2000). Demand and cost forecast error sensitivity analyses in aggregate production planning by possibilistic linear programming models. Journal of intelligent manufacturing, 11(4), 355-364.
[11]   Wang, R. C., & Fang, H. H. (2001). Aggregate production planning with multiple objectives in a fuzzy environment. European journal of operational research, 133(3), 521-536.
[12]   Wang, R. C., & Liang, T. F. (2005). Aggregate production planning with multiple fuzzy goals. The international journal of advanced manufacturing technology, 25(5-6), 589-597.
[13]   Gulsun, B., Tuzkaya, G., Tuzkaya, U. R., & Onut, S. (2009). An aggregate production planning strategy selection methodology based on linear physical programming. International journal of industrial engineering, 16(2), 135-146.
[14]   Nowak, M. (2013). An interactive procedure for aggregate production planning. Croatian operational research review, 4(1), 247-257.
[15]   Chakrabortty, R. K., Hasin, M. A. A., Sarker, R. A., & Essam, D. L. (2015). A possibilistic environment based particle swarm optimization for aggregate production planning. Computers & industrial engineering, 88, 366-377.
[16]   Shyu, S. J., Lin, B. M., & Yin, P. Y. (2004). Application of ant colony optimization for no-wait flowshop scheduling problem to minimize the total completion time. Computers & industrial engineering, 47(2-3), 181-193.
[17]   Montgomery, J., Fayad, C., & Petrovic, S. (2006). Solution representation for job shop scheduling problems in ant colony optimisation. International workshop on ant colony optimization and swarm intelligence (pp. 484-491). Berlin, Heidelberg: Springer.
[18]   Pal, A., Chan, F. T. S., Mahanty, B., & Tiwari, M. K. (2011). Aggregate procurement, production, and shipment planning decision problem for a three-echelon supply chain using swarm-based heuristics. International journal of production research, 49(10), 2873-2905.
[19]   Bremermann, H. J., Oehme, R., & Taylor, J. G. (1958). Proof of dispersion relations in quantized field theories. Physical review, 109(6), 2178.
[20]   Ramezanian, R., Rahmani, D., & Barzinpour, F. (2012). An aggregate production planning model for two phase production systems: Solving with genetic algorithm and tabu search. Expert systems with applications, 39(1), 1256-1263.
[21]   Chakrabortty, R. K., & Hasin, M. A. A. (2013). Solving an aggregate production planning problem by fuzzy based genetic algorithm approach. International journal of fuzzy logic systems, 3(1), 1-15.
[22]   Hossain, M. M., Nahar, K., Reza, S., & Shaifullah, K. M. (2016). Multi-period, multi-product, aggregate production planning under demand uncertainty by considering wastage cost and incentives. World review of business research, 6(2), 170-185.
[23]   Savsani, P., Banthia, G., Gupta, J., & Ronak, V. (2016). Optimal aggregate production planning by using genetic algorithm. Proceedings of the international conference on industrial engineering and operations management, (IEOM) (pp. 863-874).
[24]   Mahmud, S., Hossain, M. S., & Hossain, M. M. (2018). Application of multi-objective genetic algorithm to aggregate production planning in a possibilistic environment. International journal of industrial and systems engineering, 30(1), 40-59.
[25]   Jamalnia, A., Yang, J. B., Feili, A., Xu, D. L., & Jamali, G. (2019). Aggregate production planning under uncertainty: a comprehensive literature survey and future research directions. The international journal of advanced manufacturing technology, 102(1-4), 159-181.
[26]   Al Aziz, R., Paul, H. K., Karim, T. M., Ahmed, I., & Azeem, A. (2018). Modeling and optimization of multi-layer aggregate production planning. Journal of operations and supply chain management, 11(2), 1-15.
[27]   Mehdizadeh, E., Niaki, S. T. A., & Hemati, M. (2018). A bi-objective aggregate production planning problem with learning effect and machine deterioration: Modeling and solution. Computers & operations research, 91, 21-36.
[28]   Malhotra, R., Singh, N., & Singh, Y. (2011). Genetic algorithms: Concepts, design for optimization of process controllers. Computer and information science, 4(2), 39.
[29]   Chakrabortty, R. K., & Hasin, M. A. A. (2013). Solving an aggregate production planning problem by using multi-objective genetic algorithm (MOGA) approach. International journal of industrial engineering computations, 4, 1-12.
[30]   Mohammadi-Andargoli, H., Tavakkoli-Moghaddam, R., Shahsavari Pour, N., & Abolhasani-Ashkezari, M. H. (2012). Duplicate genetic algorithm for scheduling a bi-objective flexible job shop problem. International journal of research in industrial engineering, 1(2), 10-26.
[31]   Moradi, N., & Shadrokh, S. (2019). A simulated annealing optimization algorithm for equal and un-equal area construction site layout problem. International journal of research in industrial engineering, 8(2), 89-104.
[32]   Ali, S. M., & Nakade, K. (2015). A mathematical optimization approach to supply chain disruptions management considering disruptions to suppliers and distribution centers. Operations and supply chain management, 8(2), 57-66.