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Apportioning the Production Quantities into Parallel Production Facilities for Multiple Products  

Kim, Tae-Bok (인천대학교 동북아물류대학원)
Publication Information
Korean Management Science Review / v.24, no.1, 2007 , pp. 63-76 More about this Journal
Abstract
To realize the mass customization entails the optimized supply chain design for efficiently producing and delivering the various products. In this study, we considered the problem obtaining the optimized production policy under the situation wherein the multiple products are apportioned into multiple parallel production facilities. More specifically, the production set-up costs incurs according to whether the production facilities are utilized or not. The facility-dependent set-up costs increase the problem complexity in solving the production apportioning problem for multiple products. This problem can be formulated as concave minimization problem, which is known as NP-hard problem. In this paper, a heuristic algorithm is proposed to solve two conjoint problems : one is to select the cost-effective facilities from alternative multiple production facilities and the other is to apportion the production lot to those selected facilities.
Keywords
Mass Customization; Multiple Production Facilities; NP-hard;
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