Fuzzy Multi-Objective Linear Programming and Simulation Approach to the Development of Valid and Realistic Master Production Schedule

Master production schedule (MPS) plays an important role in an integrated production planning system. It converts the strategic planning defined in a production plan into the tactical operation execution. The MPS is also known as a tool for top management to control over manufacture resources and becomes input of the downstream planning levels such as material requirement planning (MRP) and capacity requirement planning (CRP). Hence, inappropriate decision on the MPS development may lead to infeasible execution, which ultimately causes poor delivery performance. One must ensure that the proposed MPS is valid and realistic for implementation before it is released to real manufacturing system. In practice, where production environment is stochastic in nature, the development of MPS is no longer simple task. The varying processing time, random event such as machine failure is just some of the underlying causes of uncertainty that may be hardly addressed at planning stage so that in the end the valid and realistic MPS is tough to be realized. The MPS creation problem becomes even more sophisticated as decision makers try to consider multi-objectives; minimizing inventory, maximizing customer satisfaction, and maximizing resource utilization. This study attempts to propose a methodology for MPS creation which is able to deal with those obstacles. This approach takes into account uncertainty and makes trade off among conflicting multi-objectives at the same time. It incorporates fuzzy multi-objective linear programming (FMOLP) and discrete event simulation (DES) for MPS development.

On Transport Service Selection in Intermodal Rail/Road Distribution Networks

Intermodal rail/road freight transport constitutes an alternative to long-haul road transport for the distribution of large volumes of goods. The paper introduces the intermodal transportation problem for the tactical planning of mode and service selection. In rail mode, shippers either book train capacity on a per-unit basis or charter block trains completely. Road mode is used for short-distance haulage to intermodal terminals and for direct shipments to customers. We analyze the competition of road and intermodal transportation with regard to freight consolidation and service cost on a model basis. The approach is applied to a distribution system of an industrial company serving customers in eastern Europe. The case study investigates the impact of transport cost and consolidation on the optimal modal split.