A two stage solution procedure for production planning system with advance demand information

Nobuyuki Ueno, Kiyotaka Kadomoto, Takashi Hasuike, Koji Okuhara

Research output: Contribution to journalArticle

Abstract

We model for 'Naiji System' which is a unique corporation technique between a manufacturer and suppliers in Japan. We propose a two stage solution procedure for a production planning problem with advance demand information, which is called 'Naiji'. Under demand uncertainty, this model is formulated as a nonlinear stochastic programming problem which minimizes the sum of production cost and inventory holding cost subject to a probabilistic constraint and some linear production constraints. By the convexity and the special structure of correlation matrix in the problem where inventory for different periods is not independent, we propose a solution procedure with two stages which are named Mass Customization Production Planning & Management System (MCPS) and Variable Mesh Neighborhood Search (VMNS) based on meta-heuristics. It is shown that the proposed solution procedure is available to get a near optimal solution efficiently and practical for making a good master production schedule in the suppliers.

Original languageEnglish
Pages (from-to)633-646
Number of pages14
JournalJournal of Advanced Mechanical Design, Systems and Manufacturing
Volume6
Issue number5
DOIs
Publication statusPublished - 2012
Externally publishedYes

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Planning
Stochastic programming
Costs
Industry

Keywords

  • Advance demand information
  • Corporation
  • Correlation matrix
  • Inventory
  • Meta-heuristics
  • Production planning
  • Stochastic programming

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering
  • Mechanical Engineering

Cite this

A two stage solution procedure for production planning system with advance demand information. / Ueno, Nobuyuki; Kadomoto, Kiyotaka; Hasuike, Takashi; Okuhara, Koji.

In: Journal of Advanced Mechanical Design, Systems and Manufacturing, Vol. 6, No. 5, 2012, p. 633-646.

Research output: Contribution to journalArticle

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