A new lot sizing and scheduling heuristic for multi-site biopharmaceutical production

Biopharmaceutical manufacturing requires high investments and long-term production planning. For large biopharmaceutical companies, planning typically involves multiple products and several production facilities. Production is usually done in batches with a substantial set-up cost and time for switching between products. The goal is to satisfy demand while minimising manufacturing, set-up and inventory costs. The resulting production planning problem is thus a variant of the capacitated lot-sizing and scheduling problem, and a complex combinatorial optimisation problem. Inspired by genetic algorithm approaches to job shop scheduling, this paper proposes a tailored construction heuristic that schedules demands of multiple products sequentially across several facilities to build a multi-year production plan (solution). The sequence in which the construction heuristic schedules the different demands is optimised by a genetic algorithm. We demonstrate the effectiveness of the approach on a biopharmaceutical lot sizing problem and compare it with a mathematical programming model from the literature. We show that the genetic algorithm can outperform the mathematical programming model for certain scenarios because the discretisation of time in mathematical programming artificially restricts the solution space.     

Lead time management

In intermittent production systems, job shops, manufacturing lead times are often long and variable, yet only about 10% is due to the actual processing time. This is a major difficulty in planning production. Two alternative approaches exist for determining planning values for manufacturing lead times to use in production planning and control systems. The first is to treat them as independent uncontrollable variables. It is then a forecasting problem with the emphasis on minimising the impact of the forecasting errors. The second approach puts the emphasis on control and attempts to manage the average lead times to match pre-determined norms. This article reviews and compares these two approaches. It concludes that the second is the most appropriate but that it requires a close cooperation between the production and marketing functions of the firm. This is best achieved by regarding the firm as a hierarchical chain of backlogs connected by input/output relations.     

An Expert System Framework for Economic Evaluation of Machining Operation Planning

Recognising the importance of combining manufacturing and management systems for machining operation planning, this paper presents a new methodology for the evaluation of economic aspects in an operation plan. To ensure that the quality of machined parts satisfies the required specifications, the manufacturing system acts as an alternative generator that provides meaningful and practical plans. Through cost analysis, the variable, fixed, and total costs associated with the machining operation are quantitatively determined. The management system, which functions as an evaluation mechanism, then selects the optimal plan based on the defined goal. The proposed methodology has been applied in the framework design of an expert system. The program establishes a sequence of machining operation planning and searches for the optimal plan. This optimal plan integrates considerations from both managers and production engineers, and balances their needs for efficient machining of a quality product.     

Structuring production planning systems for computer applications

Activities in a job shop type mechanical company can be split in production, product cycle and production cycle. The corresponding flow in each of these are materials, manufacturing specifications and product requirements. Production planning will plan and control these flows. Basic data structures are a product model and a corresponding hierarchy linked to production resources. A planning system may be designed by combining a set of operation or building blocks. These are three types: user communication, data base management and basic operations. The basic operations cover all processing necessary in production planning and represent the fundamental building blocks. A list of basic operations is suggested.     

Integrated multi-site aggregate production-pricing planning in a two-echelon supply chain with multiple demand classes

This paper proposes a production and differential pricing decision model in a two-echelon supply chain that involves a demand from two or more market segments. In this framework, the retailer is allowed to set different prices during the planning horizon. While integrated production-marketing management has been a key research issue in supply chain management for a long time, little attention has been given to set prices and marketing expenditures in integrated multi-site (parallel) manufacturing systems and multiple demand classes. Generally, the presence of multiple demand classes induced by different market segments may impose demand leakage and then change production plan and ordering policies throughout the supply chain system. To tackle this problem, this paper develops a novel approach in order to provide an optimal aggregate production and marketing plan by interconnecting the sales channels of the retailer and demand. A non-linear model is established to determine optimal price differentiation, marketing expenditures and production plans of manufacturing sites in a multi-period, multi-product and multi-sale channels production planning problem by maximizing total profit of the supply chain. To handle the model and obtain solutions, we propose an efficient analytical model based upon convex hulls. Finally, we apply the proposed procedure to a clothing company in order to show usefulness and significance of the model and solution method.     

DEA-based production planning considering influencing factors

When planning production in a centralized decision-making environment using data envelopment analysis (DEA), previous researches usually plan for units by selecting best-practice points within the entire production possibility set or adhering to their original abilities so that potentials may not be fully explored. In practice, there often exist factors that influence units’ production abilities. Difficulties may occur when improving inefficient units’ performances or they can only be improved in a limited room. This paper takes these influencing factors into account to avoid new plans beyond units’ abilities or not fully exploring their potentials. Depending on performance variability, two DEA-based production planning approaches are proposed to optimize the total resource utilization assuming demand changes in the next production season can be forecasted. When performances are improvable, units are grouped according to the influencing factors they face. Simple numerical examples and a real world data set are used to illustrate the proposed approaches.     

A robust optimization model for multi-site production planning problem in an uncertain environment

This paper addresses the multi-site production planning problem for a multinational lingerie company in Hong Kong subject to production import/export quotas imposed by regulatory requirements of different nations, the use of manufacturing factories/locations with regard to customers’ preferences, as well as production capacity, workforce level, storage space and resource conditions at the factories. In this paper, a robust optimization model is developed to solve multi-site production planning problem with uncertainty data, in which the total costs consisting of production cost, labor cost, inventory cost, and workforce changing cost are minimized. By adjusting penalty parameters, production management can determine an optimal medium-term production strategy including the production loading plan and workforce level while considering different economic growth scenarios. The robustness and effectiveness of the developed model are demonstrated by numerical results. The trade-off between solution robustness and model robustness is also analyzed.     

A multi-class multi-level capacitated lot sizing model

When demand loading is higher than available capacity, it takes a great deal of effort for a traditional MRP system to obtain a capacity-feasible production plan. Also, the separation of lot sizing decisions and capacity requirement planning makes the setup decisions more difficult. In a practical application, a production planning system should prioritize demands when allocating manufacturing resources. This study proposes a planning model that integrates all MRP computation modules. The model not only includes multi-level capacitated lot sizing problems but also considers multiple demand classes. Each demand class corresponds to a mixed integer programming (MIP) problem. By sequentially solving the MIP problems according to their demand class priorities, this proposed approach allocates finite manufacturing resources and generates feasible production plans. In this paper we experiment with three heuristic search algorithms: (1) tabu search; (2) simulated annealing, and (3) genetic algorithm, to solve the MIP problems. Experimental designs and statistical methods are used to evaluate and analyse the performance of these three algorithms. The results show that tabu search and simulated annealing perform best in the confirmed order demand class and forecast demand class, respectively.     

考虑生产计划的多周期切割问题优化研究

切割生产广泛存在于工业企业,是原材料加工的重要环节。已有文献主要关注单周期切割问题,但是切割计划也是生产计划的一部分,切割计划和生产计划应该协调优化,达到全局最优。本文研究考虑生产计划的多周期切割问题,目标是最小化运营成本,包括准备成本、切割成本、库存成本以及母材消耗成本。首先建立混合整数规划模型;提出动态规划启发式算法;最后对算例在多种情境下测试,分析成本因子变化对最优结果的影响。算法结果与CPLEX最优结果比较,平均误差为1.85%,表明算法是有效的。     

The Application of Preprocessing and Cutting Plane Techniques for a Class of Production Planning Problems

This paper investigates properties of integer programming models for a class of production planning problems. The models are developed within a decision support system to advise a sales team of the products on which to focus their efforts in gaining new orders in the short term. The products generally require processing on several manufacturing cells and involve precedence relationships. The cells are already (partially) committed with products for stock and to satisfy existing orders and therefore only the residual capacities of each cell in each time period of the planning horizon are considered. The determination of production recommendations to the sales team that make use of residual capacities is a nontrivial optimization problem. Solving such models is computationally demanding and techniques for speeding up solution times are highly desirable. An integer programming model is developed and various preprocessing techniques are investigated and evaluated. In addition, a number of cutting plane approaches have been applied. The performance of these approaches which are both general and application specific is examined.     

Production Scheduling with Multiple Criteria Objectives

For many years the L.P. transportation technique has been proved to be an effective means of tackling production planning in the food industry. As the plan approaches implementation however, the objectives can change from ones of cost minimisation to those of utilising existing company resources. This paper describes the modifications which are required to the formulation in order to satisfy these new objectives, and is based on a study of production scheduling undertaken for a large food manufacturer.     

Production planning with uncertainty in the quality of raw materials: a case in sawmills

Motivated by sawmill production planning, this paper investigates multi-period, multi-product (MPMP) production planning in a manufacturing environment with non-homogeneous raw materials, and consequently random process yields. A two-stage stochastic program with recourse is proposed to address the problem. The random yields are modelled as scenarios with stationary probability distributions during the planning horizon. The solution methodology is based on the sample average approximation (SAA) scheme. The stochastic sawmill production planning model is validated through the Monte Carlo simulation. The computational results for a real medium capacity sawmill highlight the significance of using the stochastic model as a viable tool for production planning instead of the mean-value deterministic model, which is a traditional production planning tool in many sawmills.     

Integrated production scheduling and distribution planning in dairy supply chain by hybrid modelling

In this paper we address the production scheduling and distribution planning problem in a yoghurt production line of the multi-product dairy plants. A mixed integer linear programming model is developed for the considered problem. The objective function aims to maximize the benefit by considering the shelf life dependent pricing component and costs such as processing, setup, storage, overtime, backlogging, and transportation costs. Key features of the model include sequence dependent setup times, minimum and maximum lot sizes, overtime, shelf life requirements, machine speeds, dedicated production lines, typically arising in the dairy industry. The model obtains the optimal production plan for each product type, on each production line, in each period together with the delivery plan. The hybrid modelling approach is adopted to explore the dynamic behavior of the real world system. In the hybrid approach, operation time is considered as a dynamic factor and it is adjusted by the results of the simulation and optimization model iteratively. Thus, more realistic solutions are obtained for the scheduling problem in yoghurt industry by using the iterative hybrid optimization-simulation procedure. The efficiency and applicability of the proposed model and approach are demonstrated in a case study for a leading dairy manufacturing company in Turkey.     

Efficiency based production planning and control models

An attempt has been made, in this paper, to present two efficiency based production planning and control models taking into account only the technological, materials and inventory requirements in a manufacturing process. The results of the models have been compared with those derived from a model using traditional approaches.     

Optimal acquisition and production policy in a hybrid manufacturing/remanufacturing system with core acquisition at different quality levels

We study the acquisition and production planning problem for a hybrid manufacturing/remanufacturing system with core acquisition at two (high and low) quality conditions. We model the problem as a stochastic dynamic programming, derive the optimal dynamic acquisition pricing and production policy, and analyze the influences of system parameters on the acquisition prices and production quantities. The production cost differences among remanufacturing high- and low-quality cores and manufacturing new products are found to be critical for the optimal production and acquisition pricing policy: the acquisition price of high-quality cores is increasing in manufacturing and remanufacturing cost differences, while the acquisition price of low-quality cores is decreasing in the remanufacturing cost difference between high- and low-quality cores and increasing in manufacturing and remanufacturing cost differences; the optimal remanufacturing/manufacturing policy follows a base-on-stock pattern, which is characterized by some crucial parameters dependent on these cost differences.     

Aggregation and disaggregation in hierarchical production planning

This paper reports on a simulation study of hierarchical planning procedures, which can support a material requirements planning system. Data for this study have been obtained from a Swedish manufacturing company. The three final products considered in the simulations represent a major part of this company.An aggregate plan in terms of product groups and machine groups is derived with the aid of an aggregate model. This plan is then disaggregated by changing order release times obtained from material requirements planning, and by distributing extra capacity among individual machines.The results indicate that our methods in general perform significantly better than a comparable reference case without the supporting hierarchical planning process. In our simulation experiments we evaluate different design features, like disaggregation procedures and methods for aggregating items and machines.     

Synchronized production–distribution planning in a single-plant multi-destination network

This paper examines the flow synchronization problem between a manufacturing location and multiple destinations. Multiple products can be shipped from the manufacturing location to different locations via multiple transportation modes. These transportation modes may have different transportation lead times. The transportation costs structure of the different transportation modes offer economies of scale and can be represented by general piecewise linear functions. The production system at the manufacturing location is a serial process with a bottleneck stage. At the bottleneck stage, a predetermined production sequence must be maintained as is the case in some process-based industries. We propose a tight mixed integer programming model for integrated planning of production and distribution in the network. We show that by adding simple valid inequalities and special 0-1 variables, major computational improvements can be achieved when solving this problem with commercial solvers such as Cplex. We also propose a sequential solution approach, based on the independent, but synchronized, solutions of the production and distribution sub-problems. Finally, the solution methods proposed are tested experimentally for realistic problems and the advantage of integrated planning over independent but synchronized planning is assessed.     

Integration of production planning and scheduling using an expert system and a genetic algorithm

In the traditional approaches, processes of planning and scheduling are done sequentially, where the process plan is determined before the actual scheduling is performed. This simple approach ignores the relationship between the scheduling and planning. Practical scheduling systems need to be able to react to significant real-time events within an acceptable response time and revise schedules appropriately. Therefore, the author proposes a new methodology with artificial intelligence to support production planning and scheduling in supply net. In this approach, the production planning problem is first solved, and then the scheduling problem is considered with the constraint of the solution. The approach is implemented as a combination of expert system and genetic algorithm. The research indicates that the new system yields better results in real-life supply net than using a traditional method. The results of experiments provide that the proposed genetic algorithm produces schedules with makespan that is average 21% better than the methods based on dispatching rules.     

Design of electronic assembly lines: An analytical framework and its application

The design of component assembly lines in Printed Circuit Board (PCB) manufacturing environments is a challenging problem faced by many firms in the electronics industry. The main design approaches to such component assembly lines are the Mini-Line, Flexible Flow Line, and Hybrid Line designs. In this paper, we discuss the operational trade-offs associated with these design alternatives and present a mathematical programming framework that captures relevant system design issues. Each of the design alternatives can be viewed as a special case of the stated mathematical programming model. We develop effective algorithms to solve these mathematical programs. We have used the framework in a specific PCB manufacturing environment to advise managers on the best configuration of their lines. The models were used as sensitivity analysis tools. The results of our computational experiments, combined with qualitative comparisons of different design approaches developed by a crossfunctional team (engineers, manufacturing and product managers), have led to the development of a set of managerial guidelines for the selection of the design plan for component assembly lines in the studied environment.