Optimisation of make-to-order production for multiple-line production

• Chien-Chung Lee Department of Business Administration Aletheia University, Taiwan, R.O.C.

DOI:

https://doi.org/10.7166/24-3-639

Keywords:

Particle Swarm Optimization, delivery deadline, production yield, penalty cost.

Abstract

This work tries to consider the make-to-order production of multiple-line production with the considerations of production rate, production time interval, production yield, holding cost, manufacturing cost, setup cost, the penalty cost of shortage and constrained delivery deadline. Based on the research motivation of efficient and fast decision, this paper constructs a mathematical model for achieving the maximum total profit, and selects the Particle Swarm Optimization (PSO) as the solving approach due to its simplicity and rapid convergence. The proposed model can be categorized as a Nonlinear Programming (NLP) model and it can also function as a decision-making tool for real-time analyses of the production for multiple-line production planning. A numerical example is then followed to describe and analyze the solving results. Actually, this study is a computerized tool for dealing with the production planning of make-to-order production by constrained delivery deadlines. In sum, this research can provide not only an efficient but a fast referenced decision for an enterprise to face the fast changing business environments, and it can solve other cases easily by changing its input parameters only.