Integrated production planning and control: a multi-objective optimization model

Abstract

Purpose: Production planning and control has crucial impact on the production and business activities of enterprise. Enterprise Resource Planning (ERP) is the most popular resources planning and management system, however there are some shortcomings and deficiencies in the production planning and control because its core component is still the Material Requirements Planning (MRP). For the defects of ERP system, many local improvement and optimization schemes have been proposed, and improve the feasibility and practicality of the plan in some extent, but study considering the whole planning system optimization in the multiple performance management objectives and achieving better application performance is less. The purpose of this paper is to propose a multi-objective production planning optimization model Based on the point of view of the integration of production planning and control, in order to achieve optimization and control of enterprise manufacturing management.

Design/methodology/approach: On the analysis of ERP planning system’s defects and disadvantages, and related research and literature, a multi-objective production planning optimization model is proposed, in addition to net demand and capacity, multiple performance management objectives, such as on-time delivery, production balance, inventory, overtime production, are considered incorporating into the examination scope of the model, so that the manufacturing process could be management and controlled Optimally between multiple objectives. The validity and practicability of the model will be verified by the instance in the last part of the paper.

Findings: The main finding is that production planning management of manufacturing enterprise considers not only the capacity and materials, but also a variety of performance management objectives in the production process, and building a multi-objective optimization model can effectively optimize the management and control of enterprise manufacturing.

Practical implications: By setting cost parameters for all kinds of production objectives, mangers can maintain the balances among multiple objectives, and achieve the optimized management and control in the manufacturing process.

Originality/value: This paper propose a multi-objective production planning optimization model, which can consider multiple performance management objectives of manufacturing process, and can achieve effective planning and control of production process of enterprise.