Decision Policies for Production Networks

We present three different formulations of a simple production planning problem that treat workload-dependent lead times, limited capacity and stochastic demand in an integrated fashion. We compare chance-constrained models, two-stage stochastic programming and robust optimisation using computational experiments. Our results show that the robust optimisation approach is promising, but all the different models face different but challenging issues in addressing this complex problem. We also conclude that successful approximations to this difficult problem with the potential for practical implementation can be developed

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Integrating order acceptance decisions with flexible due dates in a production planning model with load-dependent lead times

Brahimi

Aouam

Aghezzaf

2014

International Journal of Production Research

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We consider a tactical planning problem, which integrates production planning decisions together with order acceptance decisions, while taking into account the dependency between workload and lead times. The proposed model determines which orders to accept and in which period they should be produced so that they can be delivered to the customer within the acceptable flexible due dates. When the number of accepted orders increases, the workload and production lead time also increase and this may result in the possibility of missing customer due dates. This problem is formulated as a mixed integer linear program for which two relax-and-fix heuristic solution methods are proposed. The first one decomposes the problem based on time periods while the second decomposes it based on orders. The performances of these heuristics are compared with that of a state-of-the-art commercial solver. Our results show that the time-based relax-and-fix heuristic outperforms the orderbased relax-and-fix heuristic and the solver solution as it yields better integrality gaps for much less CPU effort.

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Decision Policies for Production Networks

Cited by 8 publications

References 104 publications

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Designing Supply Chain Management Pattern in Small Scale Integrated Commercial Agriculture

Zero-order production planning models with stochastic demand and workload-dependent lead times

Integrating order acceptance decisions with flexible due dates in a production planning model with load-dependent lead times

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