An advanced overlapping production planning model in manufacturing supply chain

Abstract

Purpose

The purpose of this paper is to develop a new approach called advanced overlapping production planning (AOPP) model which considers multi‐site process selection, sequential constraints, and capacity constraints in a manufacturing supply chain environment (MSCE). AOPP model may determine the capacity plan and order margin allocation for each site and machines in an MSCE and provide the capacity information for a production planner to effectively adjust the production strategies (e.g. outsourcing, overtime, or adding a work shift) of overloading resources.

Design/methodology/approach

First, an AOPP model is presented to model the production scheduling problem in a supply chain with the objective of minimizing the fulfilling cycle time of each order and the overloads of each machine group. Second, a genetic algorithm (GA)‐based approach for solving the AOPP model is developed. Finally, a heuristic adjustment approach is proposed for planners to adjust the production plan whenever there is an exception of production occurring.

Findings

The production schedule obtained from the GA‐based AOPP approach retains order margins in each operation against other overlapping operations, and it satisfies the capacity constraints of each machine group in an MSCE and results in a better performance in process planning and production planning with finite capacity. In practice, the overloading problem can be solved by adding a work shift or working overtime. The GA‐based AOPP model provides useful information for production planners to make such decisions.

Practical implications

Production planners need a more flexible production plan with order margins to compensate for the uncertainties which frequently occur in the supply and demand sides. This research develops a model to help planners manage the order margin of production planning in an MSCE and showing that order margins become a crucial factor for achieving effective production objective in terms of short OTD (or order cycle) time.

Originality/value

The overlapping production planning approach is a useful finite capacity planning approach for handling the capacity and order margin management in certain manufacturing environment (e.g. flow shop), but less on overcoming multi‐site process selection, sequential constraints, and capacity constraints in an MSCE. In addition, the capacity plan and order margin allocation information for each site and facilities are very important for a planner to effectively adjust the production strategies (e.g. outsourcing, overtime, or adding a work shift) of overloading resources. This research addresses both issues.

Citation

Wang, L. and Shih, H. (2011), "An advanced overlapping production planning model in manufacturing supply chain", Journal of Manufacturing Technology Management, Vol. 22 No. 7, pp. 870-890. https://doi.org/10.1108/17410381111160942