Track: Supply Chain Management (SCM)

Abstract

Abstract

Aggregate production planning (APP) is the fundamental decision for medium term planning in supply chain management (SCM). The overall goal of APP is to adjust the capacity levels for a planning horizon to match customer demand and service supply. The traditional APP is purely an economic consideration that a company aims to maximize their profit. However, as the world’s growing interest in sustainability issues, the need for a powerful and effective approaches to deal with the rapid changes in global markets and international trade is essential. For this reason, the environmental and social aspects are embedded in a multi-objective integer linear programming (MILP) model with triangular fuzzy demands in this study. The proposed model is solved using the max-min operators to select the optimal solution that minimize different aspects including operational costs (production, inventory, shortage, subcontracting, labor costs), energy consumption, and workforce motivation level during the planning horizon. The model is then applied for a numerical example, which produces wide range of products. The resulting model implies that these aspects can have a significant impact to address sustainability in APP.

Keywords: Aggregate production planning, fuzzy demand, sustainability perspective