Production Planning Through Multi-Objective De Novo Programming with Variable Prices

Author:

Babić Zoran1,Perić Tunjo2,Marasović Branka1

Affiliation:

1. Faculty of Economics Business and Tourism, University of Split, Cvite Fiskovića 5, 21000 Split, CROATIA

2. Faculty of Economics and Business, University of Zagreb, Trg J. F. Kennedy 6, 10000 Zagreb, CROATIA

Abstract

This paper presents a novel multi-objective De Novo programming approach developed to address production planning problems. The proposed model incorporates increasing costs or quantity discounts for certain raw materials which were not considered in previous approaches presented in scientific literature. The efficiency of the proposed methodology was tested using a bakery production planning example. The multi-objective De Novo programming model was solved using various multi-objective programming approaches: the original De Novo programming approach, several goal programming approaches, and the global criterion method. The results indicate the successful application of the proposed methodology in solving production planning problems, with no significant difference in the efficiency of the applied multi-objective programming methods.

Publisher

World Scientific and Engineering Academy and Society (WSEAS)

Subject

Economics and Econometrics,Finance,Business and International Management

Reference32 articles.

1. Zeleny M (1986). Optimal System Design with Multiple Criteria: De Novo Programming Approach. Engineering Costs and Production Economics, No. 10, p.89-94.

2. Babić Z, Pavić I (1996): Multicriterial Production Planning by De Novo Programming Approach, International Journal of Production Economics, 43 (1), p.59-66.

3. Babić Z, Perić T, Marasović B (2017): Production Planning in the Bakery Via De Novo Programming Approach, Proceedings of the 14th International Symposium on Operations Research, SOR '17, Bled, Slovenia, p.481-486.

4. Babić Z, Veža I, Balić A, Crnjac M (2018): Application of De Novo Programming Approach for Optimizing the Business Process, World Academy of Science, Engineering and Technology, International Journal of Industrial and Systems Engineering, Vol. 12, No. 5, p.519-524.

5. Chen JKC, Chen KCY, Lin SY, Yuan BJC (2008): Build Project Resources Allocation Model for Infusing Information Technology into Instruction with De Novo Programming, International Conference on Business and Information - BAI 2008, Seoul, South Korea.

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