Decision Support Models for Multi-plant Production Planning

The production planning among many sites is one of the key supply chain management issues. In this research, two decision support models for multi-plant production planning based on mixed-integer linear programming techniques are developed. The first one is a "monolithic model" that consid...

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Bibliographic Details
Published in:Tai Da Guan Li Lun Cong 2004-12, Vol.15 (1), p.49
Main Authors: Guo, R S, Chiang, David M, Chen, Y N, Liou, J C, 郭瑞祥, 蔣明晃, 陳亞男, 劉基全
Format: Article
Language:English
Subjects:
Decision support systems
Linear programming
Production planning
Supply chain management
Online Access:Get full text
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Summary:The production planning among many sites is one of the key supply chain management issues. In this research, two decision support models for multi-plant production planning based on mixed-integer linear programming techniques are developed. The first one is a "monolithic model" that considers both the capacity and material constraints and provides an optimal production plan to minimize the overall production cost. The second one is a "two-stage model," which first allocates the customers' orders to different plants under the capacity constraint and the minimum cost objective. With the orders being determined, then in the second stage a different model is used to provide the optimal production plans for individual plants under the material and capacity constraints. Results of simulation study show that the two-stage decision support model is superior and provides the near optimal solutions and requires a very efficient computation effort.
ISSN:1018-1601
2410-2490