A procedure to optimize the constrained multiple-item production system

Abstract

A production environment is considered in which multiple items are produced in a cycle. Each item in the family has a certain shelf life. A capacity constraint is also imposed on the system. Procurement of input items corresponding to the finished products is modelled to facilitate smaller order quantities. To deal with the shelf life constraint, various options have been considered. The formulation is further extended to include a generalized production cost. In order to provide more generalism, shortages in the production system and different ordering frequencies for input items are allowed. A numerical example is provided for various options using different values of shop floor index. Different variants of the generalized model may be applied when one or more situations are not present. As the product life cycles are shorter nowadays, with some modifications, the planning period may be considered as a few years and obsolescence of the items may also be included.