New Hybrid Algorithm for Solving the Capacitated Production Planning with Stochastic Demand

International Journal of Industrial Engineering

© 2018 by SSRG - IJIE Journal

Volume 5 Issue 1

Year of Publication : 2018

Authors : Azin Hosseini and SeyedSaeidHashemin

10.14445/23499362/IJIE-V5I1P102

How to Cite?

Azin Hosseini and SeyedSaeidHashemin, "New Hybrid Algorithm for Solving the Capacitated Production Planning with Stochastic Demand," SSRG International Journal of Industrial Engineering, vol. 5,  no. 1, pp. 9-13, 2018. Crossref, https://doi.org/10.14445/23499362/IJIE-V5I1P102

Abstract:

 Optimal production planning has a significant effect on product price. In this research, a production planning problem with stochastic demand has been studied. This problem has set up cost, Inventory holding cost and lost sale cost. In this problem only a certain type of product is produced. Also production capacity of each period is limited. Horizon planning is finite and it is made of N periods. Inventory of the beginning of the first period equals zero. Inventory of the end of planning horizon will be sold. Demand of each period is an arbitrary continuous random variable with known probability density function. First, the stochastic model has been transformed in to a deterministic model. Then, the deterministic model has been solved. The obtained solution has been used as a primal feasible solution in the new proposed hybridalgorithm. The proposed algorithm is created by combining analytical method andsimulation, with cyclic coordinate method. Finally, four examples have been solved using the proposed method. The solutions have been compared to exact solutions. In three examples out of four, the proposed method could successfully obtain the exact solutions.

Keywords:

capacitated production planning problem; stochastic demand; simulation; cyclic coordinate method.

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