Production scheduling to optimize the product assortment in case of constrained capacity and customer-driven substitution

Elisa Gebennini∗ Luca Zeppetella∗ Andrea Grassi∗ Bianca Rimini∗

∗Dipartimento di Scienze e Metodi dell’Ingegneria,Universit`a degli Studi di Modena e Reggio Emilia Via Amendola 2, 42122 Reggio Emilia, Italy (e-mail: Địa chỉ email này đã được bảo vệ từ spam bots, bạn cần kích hoạt Javascript để xem nó. )

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MRPII 36

Abstract:

This paper deals with the production scheduling problem by considering product assortment and demand substitution issues, along with capacity and production constraints. In this study we distinguish between long-term product assortment and short-term product assortment.

The term “long-term product assortment” is used here to indicate the whole set of alternative products that a company is able to produce over a long horizon of time. On the other hand, the “short-term product assortment” represents the products that the company is able to offer to its customers at a time.

We assume that, in general, for reasons of capacity constraints and operative costs, the short-term product assortment is a subset of the long-term product assortment. Thus, the objective is to optimize the production schedule and, consequently, the short-term product assortment by considering capacity and production constraints, customer-driven demand substitution and production and inventory costs.

In particular, a mixed-integer linear programming model is proposed in a multi-period and multi-product perspective. The validity of the model is proved by discussing a real-world case study from the brewery industry.

Keywords: Production scheduling, Demand substitution, Product assortment, Linear programming model