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

Abstract

<p class="Abstract"><strong><em><span lang="EN-US">Purpose:</span></em></strong><span lang="EN-US"> Production planning and control has crucial impact on the production and business activities of enterprise. Enterprise Resource Planning</span><span lang="EN-US"> (ERP)</span><span lang="EN-US"> is the most popular resources planning and management system, however there are some shortcomings and deficiencies in the production planning and </span><span lang="EN-US">control</span><span lang="EN-US"> because its core component is still the Material Requirements Planning</span><span lang="EN-US"> (MRP)</span><span lang="EN-US">. For the defects of ERP system, many local improvement and optimization schemes have been proposed</span><span lang="EN-US">, </span><span lang="EN-US">and improve the feasibility and practicality of the plan in some extent, but </span><span lang="EN-US">study</span><span lang="EN-US"> 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.</span></p> <p class="Abstract"><strong><em><span lang="EN-US">Design/methodology/approach:</span></em></strong><span lang="EN-US"> 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. </span><span lang="EN-US">T</span><span lang="EN-US">he validity and practicability of the model will be verified by the instance in the </span><span lang="EN-US">last</span><span lang="EN-US"> part of the </span><span lang="EN-US">paper</span><span lang="EN-US">.</span></p> <p class="Abstract"><strong><em><span lang="EN-US">Findings:</span></em></strong><span lang="EN-US"> 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</span><span lang="EN-US">, and </span><span lang="EN-US">building a multi-objective optimization model can effectively optimize the management and control of enterprise manufacturing</span><span lang="EN-US">.</span></p> <p class="Abstract"><strong><em><span lang="EN-US">Practical implications:</span></em></strong><span lang="EN-US"> By setting cost parameters for all kinds of production objectives, mangers can maintain the balances among multiple objectives, and achieve the optimized manage...

Material management without forecasting: From MRP to demand driven MRP

“…Since its development, MRP has evolved into MRP II and after that, into Enterprise Resource Planning (ERP) acquiring new features. In spite of the fact that the technology has evolved and market requirements have changed however, the basic engine used to drive information systems in ERP is still the traditional MRP system, which was developed in the 60s (Guide Jr & Srivastava, 2000;Hwa-Chung & Snyder, 2000;Ptak & Smith, 2011;Wang & Liu, 2013).…”

Improving the Quality of Process Models in Oil Refinery Information Systems

“…It is hard to imagine a modern oil refinery that does not use an ERP system. Despite the fact that ERP systems are still viewed "as structuring, integrating and centralizing information systems" (Silva et al,2013), and the issues of their implementation and operation are extensively discussed in the literature (Cardoso et al, 2004;Hwang & Grant, 2011;Cheng & Xiao-Bing, 2013), there is a general trend for using them at oil refineries as simply systems for registering accounting transactions, raw material supplies, and finished product shipments, as well as for managing warehouses of auxiliary material and technical resources. Control over the majority of elements of the production process, such as planning, management, and production accounting, at oil refineries is given to the APS and MES systems.…”

Multi-Objective Integrated Production Planning Model and Simulation Constrained Doubly by Resources and Materials

“…In addition, only material and capacity are put into considerations to determine whether it is reasonable to make the production planning arrangements, but other performance management objectives in the manufacturing process are not brought into the examination scope. In the situation with customers' needs changing rapidly and daily production management getting more and more complicated, the above mentioned disadvantages are getting even more prominent and the conventional ERP planning model cannot adapt the changing needs more and more [3].…”