Integrated production planning and control: A multi-objective optimization model
Abstract: Production planning
and control has crucial impact on the production and business activities of
enterprise. Enterprise Resource Planning (ERP) is the most popular resources
planning and management system, however there are some shortcomings and
deficiencies in the production planning and control because its core component
is still the Material Requirements Planning (MRP). For the defects of ERP
system, many local improvement and optimization schemes have been proposed, and
improve the feasibility and practicality of the plan in some extent, but study
considering the whole planning system optimization in the multiple performance
management objectives and achieving better application performance is less. The
purpose of this paper is to propose a multi-objective production planning
optimization model Based on the point of view of the integration of production
planning and control, in order to achieve optimization and control of
enterprise manufacturing management.
Design/methodology/approach: On the analysis of ERP planning system’s
defects and disadvantages, and related research and literature, a
multi-objective production planning optimization model is proposed, in addition
to net demand and capacity, multiple performance management objectives, such as
on-time delivery, production balance, inventory, overtime production, are
considered incorporating into the examination scope of the model, so that the
manufacturing process could be management and controlled Optimally between
multiple objectives. The validity and practicability of the model will be
verified by the instance in the last part of the paper.
Findings: The main finding is that production planning management of
manufacturing enterprise considers not only the capacity and materials, but
also a variety of performance management objectives in the production process,
and building a multi-objective optimization model can effectively optimize the
management and control of enterprise manufacturing.
Practical implications: By setting cost parameters for all kinds of
production objectives, mangers can maintain the balances among multiple
objectives, and achieve the optimized management and control in the
manufacturing process.
Originality/value: This paper propose a multi-objective production
planning optimization model, which can consider multiple performance management
objectives of manufacturing process, and can achieve effective planning and
control of production process of enterprise.
Author: Cheng Wang, Xiao-Bing
Liu
Journal Code: jptindustrigg130084
