Aggregate production planning: Company X - an Electrical equipment manyfacturing

Abstract

This paper proposed the aggregate production planning problem by Goal Programming Method with different operational constraints, including production capacity, workforce level, inventory capacity and other resource limitations. 7 types of products of company X will be considered simultaneously. A goal programming model is developed to maximize profit, minimize total overtime and backorder. A set of data provided by company’s manager is used to test the effectiveness and the efficiency of the proposed model. By adjusting goal priorities with consideration to important of each objective and target value, the results prove the flexibility and the reliability of the proposed model. The proposed model also support decision makers handle goal value to decide the optimal solution. Keyword: Aggregate Production Planning, Goal Programming, Electrical equipment industry, multi-criteria decision analysis, Optimization Modelling