Aggregate production planning based on applying goal programing. A case study in Sancom company's wood factory

Abstract

Aggregate production planning (APP) is an analytical tool that present a strategy to meet demand according to the capacity constraints. This paper proposes a goal programing (GP) approach with different scenarios to solve APP problem with conflicting multi- objective functions in order to maximize the profit, minimize the inventory cost and minize the cost of changing in workforce which related to the demand, inventory level, workforce level and overtime production. This GP is applied in ScanCom VietNam Company,Ltd., a real set of data is used to make sure the effectiveness and the efficiency of the proposed model. Results demonstrate that the decision-makers can find the flexibility and robustness of the proposed model by adjusting the goal priorities with respect to the importance of each objective and the aspiration level with respect to desired target values. APP model and GP is optimality solved and validated by using optimization software CPLEX. Keywords: Aggregate production planning, Goal programming, ScanCom company, Wood Furniture Industry, CPLEX