A multi-product multi-objective optimization model for aggregate production planning considering production preferences: A case study

Abstract

Aggregate production planning is a multi-objective problem which is influenced by managerial preferences which is rarely considered with these preferences in many researches. In this paper, a multi-product multi-objective aggregate-production-planning model has been proposed and implemented in an industrial ball-valves manufacturing company. In the first phase, preferences of various product groups have been determined via a multiple-attribute-decision-making method which is used as an input for the second phase. To do this, one of the outranking methods has been used because of the variety in the dimension and the nature of different attributes. In the second phase, a deterministic multi-objective mixed-integer mathematical model has been designed considering the needs of the company. This model not only concentrates on the benefits, but also considers the preferences of the products. The third objective function is decreasing work in process. To solve this model, ϵ-constraint method has been used leading to a set of Pareto-optimal solutions, enabling the decision-maker to choose the best solution by trading off between the three objective functions. So top managers are able to decide how to provide product preferences and how to decrease WIP products while the benefits remain reasonable. The results show that using the proposed approach in the case study has improved 35%, 28%, and 56% total benefit, total utility, and WIP products, respectively.

Keywords

• aggregate production planning
• multi product
• multiple-criteria decision making
• preferences
• optimization