Sustainable Production Planning Supporting Entrepreneurial Success and Environmental Friendliness

Abstract

This chapter proposes the use of modified algorithms for production planning that support both cost optimization as well as environmental friendliness. The key element is the implementation of non-linear cost functions based on ecological considerations for lot-size planning. Lot-size planning is an essential part of industrial production and integral part of ERP-systems. The classical approaches of lot-size optimization, which are widespread in industries, the Wagner-Whitin algorithm and the Part-Period Balancing heuristic, are enhanced with so-called eco-factors. These eco-factors allow an optimization based on cost as well as ecological factors. This eco-enhanced approach combined with the introduced concept of eco-balancing helps to reduce overall production costs. Simultaneously, the environmental impact is significantly reduced, resulting in a better carbon footprint.