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Master production schedule using robust optimization approaches in an automobile second-tier supplier

Antonio G. Martín (), Manuel Díaz-Madroñero () and Josefa Mula ()
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Antonio G. Martín: Universitat Politècnica de València
Manuel Díaz-Madroñero: Universitat Politècnica de València
Josefa Mula: Universitat Politècnica de València

Central European Journal of Operations Research, 2020, vol. 28, issue 1, 143-166

Abstract: Abstract 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.

Keywords: Robust optimization; Master production schedule; Uncertainty; Automotive industry (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s10100-019-00607-2

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