EURO 2024 Copenhagen
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2036. An Optimization Approach for Controlling Material Flow in a Production Network on a Tactical Level: A Case Study

Invited abstract in session MD-49: Lot-sizing with industrial applications II, stream Lot Sizing, Lot Scheduling and Production Planning.

Monday, 14:30-16:00
Room: M1 (building: 101)

Authors (first author is the speaker)

1. Elisabeth Finhold
Optimization, Fraunhofer Institute for Industrial Mathematics ITWM
2. Heiner Ackermann
Department of Optimization, Fraunhofer Institute for Industrial Mathematics ITWM
3. Till Heller
Optimization, Fraunhofer Institute for Industrial Mathematics ITWM
4. Felix Höhne
Fraunhofer Institute for Industrial Mathematics ITWM

Abstract

In this talk, we show how we tackle a production planning challenge arising in the real-world application of rubber flooring production. Here, the last of the four major production steps is hard to plan well in advance, due to a large product variety, hard-to-formalize context-dependent rules, sometimes insufficient material supply and unforeseeable events such as staff shortages or machine failures. We developed a tactical planning approach in which we compute a rough quantity-based production schedule for the four major production steps by solving a linear optimization problem. This schedule adapts to the changing production environment and state of production seamlessly and has two main functions: Firstly, it is used to monitor the flow of material through production to proactively take action if a discrepancy is observed. Secondly, the model is setup in a way such that satisfactory operational schedules for the respective production steps can be derived easily from a well-balanced rough schedule.

The approach was integrated into the company's production planning software. After a one-year test phase in which the model was further customized to this specific production setting, the resulting schedule is now used as the main decision-making tool and process control system by several departments.

Keywords

Status: accepted

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