Development of a Multi-Objective Production Planning Model for a Sawmill

Abstract

Based on the objectives set out for a Sawmill, a goal programming model was developed to simultaneously consider the production volumes goal, sales revenue goal, production cost goal, and machine utilization goal in order to develop its production plans for a horizon. The unwanted deviations from the goals served as the objective function to be optimized subject to the goals constraints, operational constraints, and non-negativity constraints. Three independent pre-emptive goal priority structures, GP1, GP2, and GP3, were considered with each prioritizing the objectives differently. The goal programming model was tested for its utility using data gathered from the mill to the three-goal priority structures. The results obtained indicated that, for GP1, the product volume goals for all products were achieved, and all but one, volume goals were achieved for both GP2 and GP3. The viability test showed that all priority structures used were profitable with GP1, GP2, and GP3 recording 1.099, 1.102, and 1.095 respectively. This indicates that the three priority structures considered are approximately profitable at the same level. The goal programming model for production planning offers the decision-maker a variety of options as to its application.