Trade-off analysis for multi-objective aggregate production planning

Aggregate production planning (APP) determines the best way to meet forecast demand in the intermediate future, often from 3 to 18 months ahead, by adjusting regular and overtime production rates, inventory level, labor levels, subcontracting and backorder rates, and other controllable variables. Ho...

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Main Authors: Mortezaei, Navid, Zulkifli, Norzima, Nilashi, Mehrbakhsh
Format: Article
Language:English
Published: UTM Press 2015
Online Access:http://psasir.upm.edu.my/id/eprint/46758/
http://psasir.upm.edu.my/id/eprint/46758/1/Trade-off%20analysis%20for%20multi-objective%20aggregate%20production%20planning.pdf
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author Mortezaei, Navid
Zulkifli, Norzima
Nilashi, Mehrbakhsh
author_facet Mortezaei, Navid
Zulkifli, Norzima
Nilashi, Mehrbakhsh
author_sort Mortezaei, Navid
building UPM Institutional Repository
collection Online Access
description Aggregate production planning (APP) determines the best way to meet forecast demand in the intermediate future, often from 3 to 18 months ahead, by adjusting regular and overtime production rates, inventory level, labor levels, subcontracting and backorder rates, and other controllable variables. However, the majority of APP models have cost-related objectives, whereas non-cost objectives are often sought by managers. In this study, authors try to minimize total costs and maximize customer service simultaneously. It is shown there is a trade-off between these objectives. Authors propose a linear model for aggregate production planning problem. Then, the two- phase method solution, which takes both objectives into consideration, is used as an alternative objective. By solving the model, it was found that minimizing one objective results in an average loss of about 20% in the other objective. The two- phase method solution, on the other hand, results in a loss of 8% from the furthest objective and 7% from the closest objective.
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institution Universiti Putra Malaysia
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language English
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publishDate 2015
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spelling upm-467582022-05-25T04:17:13Z http://psasir.upm.edu.my/id/eprint/46758/ Trade-off analysis for multi-objective aggregate production planning Mortezaei, Navid Zulkifli, Norzima Nilashi, Mehrbakhsh Aggregate production planning (APP) determines the best way to meet forecast demand in the intermediate future, often from 3 to 18 months ahead, by adjusting regular and overtime production rates, inventory level, labor levels, subcontracting and backorder rates, and other controllable variables. However, the majority of APP models have cost-related objectives, whereas non-cost objectives are often sought by managers. In this study, authors try to minimize total costs and maximize customer service simultaneously. It is shown there is a trade-off between these objectives. Authors propose a linear model for aggregate production planning problem. Then, the two- phase method solution, which takes both objectives into consideration, is used as an alternative objective. By solving the model, it was found that minimizing one objective results in an average loss of about 20% in the other objective. The two- phase method solution, on the other hand, results in a loss of 8% from the furthest objective and 7% from the closest objective. UTM Press 2015 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/46758/1/Trade-off%20analysis%20for%20multi-objective%20aggregate%20production%20planning.pdf Mortezaei, Navid and Zulkifli, Norzima and Nilashi, Mehrbakhsh (2015) Trade-off analysis for multi-objective aggregate production planning. Journal of Soft Computing and Decision Support Systems, 2 (2). pp. 1-4. ISSN 2289-8603 http://www.jscdss.com/index.php/files/article/view/29
spellingShingle Mortezaei, Navid
Zulkifli, Norzima
Nilashi, Mehrbakhsh
Trade-off analysis for multi-objective aggregate production planning
title Trade-off analysis for multi-objective aggregate production planning
title_full Trade-off analysis for multi-objective aggregate production planning
title_fullStr Trade-off analysis for multi-objective aggregate production planning
title_full_unstemmed Trade-off analysis for multi-objective aggregate production planning
title_short Trade-off analysis for multi-objective aggregate production planning
title_sort trade-off analysis for multi-objective aggregate production planning
url http://psasir.upm.edu.my/id/eprint/46758/
http://psasir.upm.edu.my/id/eprint/46758/
http://psasir.upm.edu.my/id/eprint/46758/1/Trade-off%20analysis%20for%20multi-objective%20aggregate%20production%20planning.pdf