TY - GEN
T1 - Aggregate planning using mixed integer programing
T2 - 33rd International ECMS Conference on Modelling and Simulation, ECMS 2019
AU - Ruangngam, Issara
AU - Wasusri, Thananya
N1 - Publisher Copyright:
©ECMS Mauro Iacono, Francesco Palmieri, Marco Gribaudo, Massimo Ficco (Editors).
PY - 2019/6/1
Y1 - 2019/6/1
N2 - The case study is a newly opened fruit juice concentrated factory. Three different products have been launched to serve both domestic and international markets. For its inbound logistics, it receives fresh fruits from local growers. As the fresh fruits are seasonal, its prices and quantities are higly fluctuated. A cold storage is then used to freeze and store the fruits during their peak periods in order to reduce risks of fruit shortages and high prices in off peak periods. Storaging costs of fresh fruits are, however, substantial. To produce the finished products, Clean-in-Place (CIP) is being managed before changing the product lines and it takes 3 days for each cleaning or setup. After the production process, the finished products are stocked in its warehouse no more than 2 months as its clients require the products to be 80% viable of its shelf life. Aggregate planning is then needed to match demand with supply of the case study while minimising total operating costs including purchasing cost, raw material inventory cost, semi-product cost, finished inventory cost, setup cost and labour cost. Mixed integer programing is used to find the optimal decision variables that are purchasing volumes, semi-product volumes, production volumes, and setup decisions.
AB - The case study is a newly opened fruit juice concentrated factory. Three different products have been launched to serve both domestic and international markets. For its inbound logistics, it receives fresh fruits from local growers. As the fresh fruits are seasonal, its prices and quantities are higly fluctuated. A cold storage is then used to freeze and store the fruits during their peak periods in order to reduce risks of fruit shortages and high prices in off peak periods. Storaging costs of fresh fruits are, however, substantial. To produce the finished products, Clean-in-Place (CIP) is being managed before changing the product lines and it takes 3 days for each cleaning or setup. After the production process, the finished products are stocked in its warehouse no more than 2 months as its clients require the products to be 80% viable of its shelf life. Aggregate planning is then needed to match demand with supply of the case study while minimising total operating costs including purchasing cost, raw material inventory cost, semi-product cost, finished inventory cost, setup cost and labour cost. Mixed integer programing is used to find the optimal decision variables that are purchasing volumes, semi-product volumes, production volumes, and setup decisions.
KW - Aggregate planning
KW - Fruit juice concentrated
KW - Mixed integer programing
KW - Total operating cost
UR - https://www.scopus.com/pages/publications/85068794903
U2 - 10.7148/2019-0249
DO - 10.7148/2019-0249
M3 - Conference contribution
AN - SCOPUS:85068794903
T3 - Proceedings - European Council for Modelling and Simulation, ECMS
SP - 249
EP - 253
BT - Proceedings - European Council for Modelling and Simulation, ECMS
A2 - Iacono, Mauro
A2 - Palmieri, Francesco
A2 - Gribaudo, Marco
A2 - Ficco, Massimo
A2 - Nolle, Lars
A2 - Peytchev, Evtim
PB - European Council for Modelling and Simulation
Y2 - 11 June 2019 through 14 June 2019
ER -