Stochastic programming model for production planning with stochastic aggregate demand and spreadsheet-based solution heuristics

• Authors: SAADOULI Nasreddine
• Languages of publication: EN

Abstracts

EN

By discretising the stochastic demand, a deterministic nonlinear programming formulation is developed. Then, a hybrid simulation-optimisation heuristic that capitalises on the nature of the problem is designed. The outcome is an evaluation problem that is efficiently solved using a spreadsheet model. The main contribution of the paper is providing production managers with a tr actable formulation of the production planning problem in a stochastic environment and an efficient solution scheme. A key benefit of this approach is that it provides quick near-optimal so lutions without requiring in-depth knowledge or significant investments in optimisation techniques and software.

Keywords

EN

production planning; stochastic programming; efficient algorithm; decision-making

• Publisher: Politechnika Wrocławska. Oficyna Wydawnicza Politechniki Wrocławskiej
• Journal: Operations Research and Decisions
• Year: 2021
• Volume: 31
• Issue: 4
• Pages: 117-127

Contributors

author

SAADOULI Nasreddine

• College of Business Administration, Gulf University for Science and Technology, Kuwait

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Identifiers

DOI

10.37190/ord210406