TY - GEN
T1 - A Production Planning MILP Optimization Model for a Manufacturing Company
AU - Cedillo-Robles, Juan Antonio
AU - Smith, Neale R.
AU - González-Ramirez, Rosa G.
AU - Alonso-Stocker, Julio
AU - Alonso-Stocker, Joaquín
AU - Askin, Ronald G.
N1 - Publisher Copyright:
© 2021, Springer Nature Switzerland AG.
PY - 2021
Y1 - 2021
N2 - This paper proposes a mixed-integer linear programming (MILP) model that is implemented based on a rolling horizon scheme to solve an aggregate production planning decision problem of a manufacturing company that produces snacks in Monterrey, Mexico. The demand of the company is characterized by trends and seasonality. The proposed solution is evaluated by means of computational experiments to determine the relation between demand uncertainty and flexibility of a production system. A 2k factorial experimental design and a multivariate regression were performed. Results show forecast bias and length of frozen period in the rolling horizon have a strong effect on total profit. The safety stock level was also found to be a significant factor, depending on the level of bias.
AB - This paper proposes a mixed-integer linear programming (MILP) model that is implemented based on a rolling horizon scheme to solve an aggregate production planning decision problem of a manufacturing company that produces snacks in Monterrey, Mexico. The demand of the company is characterized by trends and seasonality. The proposed solution is evaluated by means of computational experiments to determine the relation between demand uncertainty and flexibility of a production system. A 2k factorial experimental design and a multivariate regression were performed. Results show forecast bias and length of frozen period in the rolling horizon have a strong effect on total profit. The safety stock level was also found to be a significant factor, depending on the level of bias.
KW - Flexibility factors
KW - Forecast error
KW - Production planning
KW - Rolling horizon
UR - http://www.scopus.com/inward/record.url?scp=85111138575&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85111138575&partnerID=8YFLogxK
U2 - 10.1007/978-3-030-76307-7_7
DO - 10.1007/978-3-030-76307-7_7
M3 - Conference contribution
AN - SCOPUS:85111138575
SN - 9783030763060
T3 - Communications in Computer and Information Science
SP - 85
EP - 96
BT - Production Research - 10th International Conference of Production Research - Americas, ICPR-Americas 2020, Revised Selected Papers
A2 - Rossit, Daniel Alejandro
A2 - Tohmé, Fernando
A2 - Mejía Delgadillo, Gonzalo
PB - Springer Science and Business Media Deutschland GmbH
T2 - 10th International Conference of Production Research - Americas, ICPR-Americas 2020
Y2 - 9 December 2020 through 11 December 2020
ER -