Title: Production planning in a machine tool company: application of a linear lexicographic goal programming approach

Authors: Boppana V. Chowdary

Addresses: Department of Mechanical and Manufacturing Engineering, The University of The West Indies, St. Augustine, Trinidad, Trinidad and Tobago

Abstract: This paper describes a multi-objective goal programming (MOGP) model that has been developed for a machine tool manufacturing industry to find the optimum production plan as a means to know what products to be considered and how much to be produced. Performance criteria such as gross profit, product quality, machine utilisation, production cost and work-in-process (WIP) inventory were identified as multi-objectives. Lexicographic goal programming modelling approach was applied to solve the proposed multi-objective model. In order to demonstrate the capability of the developed linear MOGP model, a pre-emptive goal priority structure has been formulated in consultation with the company. The sensitivity of the MOGP model was tested with respect to alterations in the order of goal priorities and changes in parameter values. The insights gained from the sensitivity analysis will assist the similar companies to find out an optimal level of production activities on par with the organisational goals.

Keywords: production planning; machine tool industry; multiobjective goal programming; MOGP; modelling; lexicographic goal programming; pre-emptive goals; gross profit; product quality; machine utilisation; production costs; work-in-process; WIP inventory.

DOI: 10.1504/IJMCDM.2012.047848

International Journal of Multicriteria Decision Making, 2012 Vol.2 No.3, pp.282 - 310

Available online: 13 Jul 2012 *

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