Production planning considering machine failures simulation optimization approach

Abstract

Controlling failures has stochastic features and is a challenging problem in production planning. The objective of this study is to optimize production planning and minimize inventory costs, including lateness penalties, by considering failure factors. In this paper, a model is developed to integrate production planning while considering machine failures. First, this paper proposes a simulation-optimization model that coordinates production planning decisions with consideration of failures to solve the problem of series production lines. Age reduction and failure rate are considered, and the inventory cost is to be minimized in the proposed model. Also, the inventory cost is related to rescheduling decisions and tardiness considering the reliability of equipment. Then, in order to better describe the relationship between production and machine failure, the accumulative processing time of equipment is used as the input of its failure function. Finally, the proposed model is validated by a numerical case study of the Schneider Electric Manufacturing Vietnam factory. The result concludes that the proposed method to solve the problem is feasible and efficient for a series production line with multiple workstations and different product families. The proposed model in this paper is suitable for assembly manufacturing