A Production Planning MILP Optimization Model for a Manufacturing Company

Juan Antonio Cedillo-Robles; Neale R. Smith; Rosa Guadalupe González; Julio Alonso-Stocker; Joaquín Alonso-Stocker; Ronald G. Askin

doi:10.1007/978-3-030-76307-7_7

A Production Planning MILP Optimization Model for a Manufacturing Company

Juan Antonio Cedillo-Robles^*, Neale R. Smith, Rosa Guadalupe González, Julio Alonso-Stocker, Joaquín Alonso-Stocker, Ronald G. Askin

^*Autor correspondiente de este trabajo

Producción científica: Capítulo del libro/informe/acta de congreso › Capítulo › revisión exhaustiva

2 Citas (Scopus)

Resumen

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 2^k 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.

Idioma original	Inglés
Título de la publicación alojada	Production Research - 10th International Conference of Production Research - Americas, ICPR-Americas 2020, Revised Selected Papers
Editores	Daniel Alejandro Rossit, Fernando Tohmé, Gonzalo Mejía Delgadillo
Editorial	Springer Science and Business Media Deutschland GmbH
Páginas	85-96
Número de páginas	12
ISBN (versión impresa)	9783030763060
DOI	https://doi.org/10.1007/978-3-030-76307-7_7
Estado	Publicada - 2021
Evento	10th International Conference of Production Research - Americas, ICPR-Americas 2020 - Virtual, Online Duración: 9 dic. 2020 → 11 dic. 2020

Serie de la publicación

Nombre	Communications in Computer and Information Science
Volumen	1407 CCIS
ISSN (versión impresa)	1865-0929
ISSN (versión digital)	1865-0937

Conferencia

Conferencia	10th International Conference of Production Research - Americas, ICPR-Americas 2020
Ciudad	Virtual, Online
Período	9/12/20 → 11/12/20

Nota bibliográfica

Publisher Copyright:
© 2021, Springer Nature Switzerland AG.

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10.1007/978-3-030-76307-7_7

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Cedillo-Robles, J. A., Smith, N. R., González, R. G., Alonso-Stocker, J., Alonso-Stocker, J., & Askin, R. G. (2021). A Production Planning MILP Optimization Model for a Manufacturing Company. En D. A. Rossit, F. Tohmé, & G. Mejía Delgadillo (Eds.), Production Research - 10th International Conference of Production Research - Americas, ICPR-Americas 2020, Revised Selected Papers (pp. 85-96). (Communications in Computer and Information Science; Vol. 1407 CCIS). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-3-030-76307-7_7

Cedillo-Robles, Juan Antonio ; Smith, Neale R. ; González, Rosa Guadalupe et al. / A Production Planning MILP Optimization Model for a Manufacturing Company. Production Research - 10th International Conference of Production Research - Americas, ICPR-Americas 2020, Revised Selected Papers. editor / Daniel Alejandro Rossit ; Fernando Tohmé ; Gonzalo Mejía Delgadillo. Springer Science and Business Media Deutschland GmbH, 2021. pp. 85-96 (Communications in Computer and Information Science).

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title = "A Production Planning MILP Optimization Model for a Manufacturing Company",

abstract = "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.",

keywords = "Flexibility factors, Forecast error, Production planning, Rolling horizon",

author = "Cedillo-Robles, {Juan Antonio} and Smith, {Neale R.} and Gonz{\'a}lez, {Rosa Guadalupe} and Julio Alonso-Stocker and Joaqu{\'i}n Alonso-Stocker and Askin, {Ronald G.}",

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Cedillo-Robles, JA, Smith, NR, González, RG, Alonso-Stocker, J, Alonso-Stocker, J & Askin, RG 2021, A Production Planning MILP Optimization Model for a Manufacturing Company. En DA Rossit, F Tohmé & G Mejía Delgadillo (eds.), Production Research - 10th International Conference of Production Research - Americas, ICPR-Americas 2020, Revised Selected Papers. Communications in Computer and Information Science, vol. 1407 CCIS, Springer Science and Business Media Deutschland GmbH, pp. 85-96, 10th International Conference of Production Research - Americas, ICPR-Americas 2020, Virtual, Online, 9/12/20. https://doi.org/10.1007/978-3-030-76307-7_7

A Production Planning MILP Optimization Model for a Manufacturing Company. / Cedillo-Robles, Juan Antonio; Smith, Neale R.; González, Rosa Guadalupe et al.
Production Research - 10th International Conference of Production Research - Americas, ICPR-Americas 2020, Revised Selected Papers. ed. / Daniel Alejandro Rossit; Fernando Tohmé; Gonzalo Mejía Delgadillo. Springer Science and Business Media Deutschland GmbH, 2021. p. 85-96 (Communications in Computer and Information Science; Vol. 1407 CCIS).

Producción científica: Capítulo del libro/informe/acta de congreso › Capítulo › revisión exhaustiva

TY - CHAP

T1 - A Production Planning MILP Optimization Model for a Manufacturing Company

AU - Cedillo-Robles, Juan Antonio

AU - Smith, Neale R.

AU - González, Rosa Guadalupe

AU - Alonso-Stocker, Julio

AU - Alonso-Stocker, Joaquín

AU - Askin, Ronald G.

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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

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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

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Y2 - 9 December 2020 through 11 December 2020

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Cedillo-Robles JA, Smith NR, González RG, Alonso-Stocker J, Alonso-Stocker J, Askin RG. A Production Planning MILP Optimization Model for a Manufacturing Company. En Rossit DA, Tohmé F, Mejía Delgadillo G, editores, Production Research - 10th International Conference of Production Research - Americas, ICPR-Americas 2020, Revised Selected Papers. Springer Science and Business Media Deutschland GmbH. 2021. p. 85-96. (Communications in Computer and Information Science). doi: 10.1007/978-3-030-76307-7_7

A Production Planning MILP Optimization Model for a Manufacturing Company

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