Simulated annealing algorithm for solving an aggregate production planning model with product returns

In this paper, we develop a mixed integer linear programming (MILP) model for aggregate production planning system with product returns. These returned products can either be disposed or be remanufactured to be sold as new ones again; hence the market demands can be satisfied by either newly produced products or remanufactured ones. The capacities of production, disposal and remanufacturing are limited. Due to NP-hard class of APP, we implement asimulated annealing (SA). Additionally, Taguchi method is conducted to calibrate the parameter of the meta-heuristics and select the optimal levels of the algorithm’s performance influential factors.

Keywords:

Aggregate Production Planning , Product Returns , Taguchi method