Multi-site aggregate production planning with multiple objectives: A goal programming approach

• Published in: Production planning & control Vol. 14; no. 5; pp. 425 - 436
• Main Authors: Leung, Stephen C. H., Wu, Yue, Lai, K. K.
• Format: Journal Article
• Language: English
• Published: Taylor & Francis Group 01.07.2003
• Subjects: Aggregate Production Planning; Multi-site Planning; Multiple Criteria Decision-making; Optimization
• ISSN: 0953-7287; 1366-5871
• DOI: 10.1080/0953728031000154264

This paper addresses the problem of aggregate production planning (APP) for a multinational lingerie company in Hong Kong. The multi-site production planning problem considers the production loading plans among manufacturing factories subject to certain restrictions, such as 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 of the factories. In this paper, a multi-objective model is developed to solve the production planning problems, in which the profit is maximized but production penalties resulting from going over/under quotas and the change in workforce level are minimized. To enhance the practical implications of the proposed model, different managerial production loading plans are evaluated according to changes in future policy and situation. Numerical results demonstrate the robustness and effectiveness of the developed model.