AGGREGATE PRODUCTION PLANNING WITH FUZZY DEMAND AND VARIABLE SYSTEM CAPACITY BASED ON TOC MEASURES

Authors

  • Busaba Phruksaphanrat Industrial Statistics and Operational Research Unit (ISO-RU), Industrial Engineering Department, Faculty of Engineering, Thammasat University
  • Ario Ohsato Department of Management and Information Systems Science, Nagaoka University of Technology
  • Pisal Yenradee Industrial Engineering Program, Sirindhorn International Institute of Technology, Thammsat University

DOI:

https://doi.org/10.23055/ijietap.2011.18.5.224

Keywords:

Aggregate Production Planning, theory of constraints, fuzzy demands, trapezoidal fuzzy number, possibility theory

Abstract

Aggregate Production Planning (APP) model with fuzzy demand and variable system capacity is proposed in this research for a practical APP problem. A conventional APP problem assumes crisp market demands and also limited capacity by fixed hardware. In the proposed model, the difficulty in estimation crisp demands is relaxed by using fuzzy demand which also increases the flexibility of estimation and obtains the better production plan that can increase profit. The new approach to handle the fuzzy demand by integrating the possibility level of demand is proposed. Moreover, the limitation of system capacity is resolved by allowing additional investment in small machines and equipment. This investment can increase the necessary production capacity and eliminate the bottleneck of the system.  Three performance measures, based on the Theory of Constraints (TOC) concept, which are currently used in many organizations, are used to evaluate performance of the model. It is found that the proposed model can generate higher performance than conventional APP models.

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Published

2011-07-14

How to Cite

Phruksaphanrat, B., Ohsato, A., & Yenradee, P. (2011). AGGREGATE PRODUCTION PLANNING WITH FUZZY DEMAND AND VARIABLE SYSTEM CAPACITY BASED ON TOC MEASURES. International Journal of Industrial Engineering: Theory, Applications and Practice, 18(5). https://doi.org/10.23055/ijietap.2011.18.5.224

Issue

Section

Production Planning and Control