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A stochastic production planning problem in hybrid manufacturing and remanufacturing systems with resource capacity planning

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Abstract

Hybrid manufacturing and remanufacturing systems have become a topic of considerable interest in the advanced manufacturing industry due in part to the profit and cost saving by reusing remaufacturable parts in the end-of-use products. In this paper, we investigate a production planning problem in such a hybrid system with the integration of resource capacity planning that is shared by both manufacturing and remanufacturing processes. Due to the uncertain nature in practice, both new and remanufactured product demands are stochastic. Taking a scenario-based approach to express the stochastic demands according to the historical data, we formulate the stochastic aggregate production planning problem as a mixed integer linear programming (MILP) model. Based on the Lagrangian relaxation (LR) technique, the MILP model is decomposed into four sets of sub-problems. For these sub-problems, four heuristic procedures are developed, respectively. Then, a LR based heuristic for the main problem is proposed and further tested on a large set of problem instances. The results show that the algorithm generates solutions very close to optimums in an acceptable time. At last, the impact of demands uncertainty on the solution is analyzed by the sensitivity analysis on a number of scenarios.

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Acknowledgements

This work is supported by the Social Sciences Foundation of Anhui Province (No. AHSKQ2016D28), the First Major Project in Anhui Normal University (FRZD201302), the Public Projects of Zhejiang Province (No. 2017C31069), the Natural Science Foundation of Anhui Province (No. 1608085QG167, 1608085MG152), the National Natural Science Foundation of China (No. 71601065, 71231004, 71501058) and the Humanities and Social Sciences Foundation of the Chinese Ministry of Education (No. 15YJC630097). Panos M. Pardalos is partially supported by the project of “Distinguished International Professor by the Chinese Ministry of Education” (MS2014HFGY026).

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Authors and Affiliations

  1. School of Economics and Management, Anhui Normal University, Wuhu, China

    Chang Fang

  2. Center for Applied Optimization, Department of Industrial and Systems Engineering, University of Florida, Gainesville, USA

    Chang Fang, Panos M. Pardalos, Jianyu Long & Jun Pei

  3. Department of Metallurgical Engineering, School of Materials Science and Engineering, Chongqing University, Chongqing, China

    Jianyu Long

  4. School of Management, Hefei University of Technology, Hefei, China

    Xinbao Liu & Jun Pei

  5. Department of Logistics Management and Engineering, Zhejiang Gongshang University, Hangzhou, China

    Chao Zuo

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  1. Chang Fang
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  2. Xinbao Liu
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Correspondence to Chao Zuo.

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Fang, C., Liu, X., Pardalos, P.M. et al. A stochastic production planning problem in hybrid manufacturing and remanufacturing systems with resource capacity planning. J Glob Optim 68, 851–878 (2017). https://doi.org/10.1007/s10898-017-0500-6

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  • DOI: https://doi.org/10.1007/s10898-017-0500-6

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