A Two Period Model for Multi-Stage Multi-Product Production Planning with Random Yield

Multi stage multi product production planning problem is considered when dealing with random yield. In this way, the problem is formulated and analyzed via mathematical relations and a new solution method is developed for obtaining optimal production plans. On the other hand, presence of random yields results in unreliable production plans rather than perfect yield; consequently, we encounter with more numbers of shortage time. Then the paper discusses the problem with allowable shortage and bypass. The model aims at minimizing total cost of production plan while considering a set of technological constraints and is solved by Lingo 8.0 for a set of test data.

Keywords:

Production Planning , Imperfect Production , Random Yield: Multi Stages , Two Periods