Analysis of Optimal Production Planning in MRP Systems for an Environmentally Conscious Recycling
Environmentally Conscious Manufacturing
This paper describes a stochastic production planning problem for an environmentally conscious recycling technique in material requirements planning (MRP) towards a more sustainable pattern of production. The model is formulated as a nonlinear integer programming (NIP), which contains two types of nonlinear programming problems: determining (1) the optimal end-product quantity and (2) component parts machining in a finite planning horizon with both the stochastic demand rate of end-product and the volume of component parts recycled. This decision problem is solved so as to minimize the sum of production costs, inventory holding costs, and backorder costs subject to the capacity constraints, the stochastic demand requirement, and desired component part quantity determining from the end-product scheduling. The Lagrangean relaxation technique is introduced to solve the NIP by developing the two-step hybrid procedure. Finally, a numerical example is demonstrated to explain the analytical results.
Departmental Bulletin Paper