Master production schedule using robust optimization approaches in an automobile second-tier supplier
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This paper considers a real-world automobile second-tier supplier that manufactures decorative surface finishings of injected parts provided by several suppliers, and which devises its master production schedule by a manual spreadsheet-based procedure. The imprecise production time in this manufacturer’s production process is incorporated into a deterministic mathematical programming model to address this problem by two robust optimization approaches. The proposed model and the corresponding robust solution methodology improve production plans by optimizing the production, inventory and backlogging costs, and demonstrate the their feasibility for a realistic master production schedule problem that outperforms the heuristic decision-making procedure currently being applied in the firm under study.
KeywordsRobust optimization Master production schedule Uncertainty Automotive industry
Funding was provided by Horizon 2020 Framework Programme (Grant Agreement No. 636909) in the frame of the “Cloud Collaborative Manufacturing Networks” (C2NET) project.
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