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A Production Planning Algorithm for a Supply Chain Network Considering Bark-Order and Resource Capacity Using GRASP Method  

Shin, Hyun-Joon (Department of Management Engineering, Sangmyung University)
Lee, Young-Sup (Department of Management Engineering, Sangmyung University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.32, no.3, 2009 , pp. 29-39 More about this Journal
Abstract
In an environment of global competition, the success of a manufacturing corporation is directly related to how it plans and executes production in particular as well as to the optimization level of its process in general. This paper proposes a production planning algorithm for the Multi-Level, multi-item Capacitated Lot Sizing Problem (MLCLSP) in supply chain network considering back-order. MLCLSP corresponds to a mixed integer programming (MIP) problem and is NP-hard. Therefore, this paper proposes an effective algorithm, GRHS (GRASP-based Rolling Horizon Search) that solves this problem within reasonable computational time and evaluates its performance under a variety of problem scenarios.
Keywords
Production Planning Algorithm; Back-Order; Resource Capacity; Multi-Level Multi-Item Capacitated Lot Sizing; Supply Chain Network;
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