A robust optimization model for multi-site production planning problem in an uncertain environment

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journal

221 Scopus Citations
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Author(s)

  • Stephen C.H. Leung
  • Sally O.S. Tsang
  • W. L. Ng
  • Yue Wu

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)224-238
Journal / PublicationEuropean Journal of Operational Research
Volume181
Issue number1
Publication statusPublished - 16 Aug 2007

Abstract

This paper addresses the multi-site production planning problem for a multinational lingerie company in Hong Kong subject to production import/export quotas imposed by regulatory requirements of different nations, the use of manufacturing factories/locations with regard to customers' preferences, as well as production capacity, workforce level, storage space and resource conditions at the factories. In this paper, a robust optimization model is developed to solve multi-site production planning problem with uncertainty data, in which the total costs consisting of production cost, labor cost, inventory cost, and workforce changing cost are minimized. By adjusting penalty parameters, production management can determine an optimal medium-term production strategy including the production loading plan and workforce level while considering different economic growth scenarios. The robustness and effectiveness of the developed model are demonstrated by numerical results. The trade-off between solution robustness and model robustness is also analyzed. © 2006 Elsevier B.V. All rights reserved.

Research Area(s)

  • Production, Robust optimization, Stochastic programming, Supply chain management

Citation Format(s)

A robust optimization model for multi-site production planning problem in an uncertain environment. / Leung, Stephen C.H.; Tsang, Sally O.S.; Ng, W. L.; Wu, Yue.

In: European Journal of Operational Research, Vol. 181, No. 1, 16.08.2007, p. 224-238.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journal