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Robust production planning in a manufacturing environment with random yield: A case in sawmill production planning

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  • Kazemi Zanjani, Masoumeh
  • Ait-Kadi, Daoud
  • Nourelfath, Mustapha

Abstract

This paper addresses a multi-period, multi-product sawmill production planning problem where the yields of processes are random variables due to non-homogeneous quality of raw materials (logs). In order to determine the production plans with robust customer service level, robust optimization approach is applied. Two robust optimization models with different variability measures are proposed, which can be selected based on the tradeoff between the expected backorder/inventory cost and the decision maker risk aversion level about the variability of customer service level. The implementation results of the proposed approach for a realistic-scale sawmill example highlights the significance of using robust optimization in generating more robust production plans in the uncertain environments compared with stochastic programming.

Suggested Citation

  • Kazemi Zanjani, Masoumeh & Ait-Kadi, Daoud & Nourelfath, Mustapha, 2010. "Robust production planning in a manufacturing environment with random yield: A case in sawmill production planning," European Journal of Operational Research, Elsevier, vol. 201(3), pages 882-891, March.
    • Handle: RePEc:eee:ejores:v:201:y:2010:i:3:p:882-891
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    Cited by:

    1. Stephanie Vogelgesang & Ian M. Langella & Karl Inderfurth, 2012. "How Yield Process Misspecification Affects the Solution of Disassemble-to-order Problems," FEMM Working Papers 120029, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    2. Talay, Işılay & Özdemir-Akyıldırım, Öznur, 2019. "Optimal procurement and production planning for multi-product multi-stage production under yield uncertainty," European Journal of Operational Research, Elsevier, vol. 275(2), pages 536-551.
    3. Broz, Diego & Vanzetti, Nicolás & Corsano, Gabriela & Montagna, Jorge M., 2019. "Goal programming application for the decision support in the daily production planning of sawmills," Forest Policy and Economics, Elsevier, vol. 102(C), pages 29-40.
    4. Mengshi Lu & Zuo‐Jun Max Shen, 2021. "A Review of Robust Operations Management under Model Uncertainty," Production and Operations Management, Production and Operations Management Society, vol. 30(6), pages 1927-1943, June.
    5. Han, Guanghua & Dong, Ming & Liu, Shaoxuan, 2014. "Yield and allocation management in a continuous make-to-stock system with demand upgrade substitution," International Journal of Production Economics, Elsevier, vol. 156(C), pages 124-131.
    6. Aalaei, Amin & Davoudpour, Hamid, 2017. "A robust optimization model for cellular manufacturing system into supply chain management," International Journal of Production Economics, Elsevier, vol. 183(PC), pages 667-679.
    7. Sanei Bajgiran, Omid & Kazemi Zanjani, Masoumeh & Nourelfath, Mustapha, 2016. "The value of integrated tactical planning optimization in the lumber supply chain," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 22-33.
    8. Donya Rahmani & Arash Zandi & Sara Behdad & Arezou Entezaminia, 2021. "A light robust model for aggregate production planning with consideration of environmental impacts of machines," Operational Research, Springer, vol. 21(1), pages 273-297, March.
    9. Omid Sanei Bajgiran & Masoumeh Kazemi Zanjani & Mustapha Nourelfath, 2017. "Forest harvesting planning under uncertainty: a cardinality-constrained approach," International Journal of Production Research, Taylor & Francis Journals, vol. 55(7), pages 1914-1929, April.
    10. K. Taghizadeh & M. Bagherpour & I. Mahdavi, 2011. "An interactive fuzzy goal programming approach for multi-period multi-product production planning problem," Fuzzy Information and Engineering, Springer, vol. 3(4), pages 393-410, December.
    11. Jahani, Hamed & Abbasi, Babak & Alavifard, Farzad & Talluri, Srinivas, 2018. "Supply chain network redesign with demand and price uncertainty," International Journal of Production Economics, Elsevier, vol. 205(C), pages 287-312.
    12. Mirzapour Al-e-hashem, S.M.J. & Malekly, H. & Aryanezhad, M.B., 2011. "A multi-objective robust optimization model for multi-product multi-site aggregate production planning in a supply chain under uncertainty," International Journal of Production Economics, Elsevier, vol. 134(1), pages 28-42, November.
    13. Mohammaddust, Faeghe & Rezapour, Shabnam & Farahani, Reza Zanjirani & Mofidfar, Mohammad & Hill, Alex, 2017. "Developing lean and responsive supply chains: A robust model for alternative risk mitigation strategies in supply chain designs," International Journal of Production Economics, Elsevier, vol. 183(PC), pages 632-653.
    14. Vanzetti, Nicolás & Broz, Diego & Corsano, Gabriela & Montagna, Jorge M., 2018. "An optimization approach for multiperiod production planning in a sawmill," Forest Policy and Economics, Elsevier, vol. 97(C), pages 1-8.
    15. Cai, Jianhu & Zhong, Man & Shang, Jennifer & Huang, Weilai, 2017. "Coordinating VMI supply chain under yield uncertainty: Option contract, subsidy contract, and replenishment tactic," International Journal of Production Economics, Elsevier, vol. 185(C), pages 196-210.
    16. Pamela Alvarez & Jorge Vera, 2014. "Application of Robust Optimization to the Sawmill Planning Problem," Annals of Operations Research, Springer, vol. 219(1), pages 457-475, August.
    17. Baghalian, Atefeh & Rezapour, Shabnam & Farahani, Reza Zanjirani, 2013. "Robust supply chain network design with service level against disruptions and demand uncertainties: A real-life case," European Journal of Operational Research, Elsevier, vol. 227(1), pages 199-215.
    18. Santos, Maria João & Curcio, Eduardo & Mulati, Mauro Henrique & Amorim, Pedro & Miyazawa, Flávio Keidi, 2020. "A robust optimization approach for the vehicle routing problem with selective backhauls," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    19. Farahani, Reza Zanjirani & Rezapour, Shabnam & Drezner, Tammy & Fallah, Samira, 2014. "Competitive supply chain network design: An overview of classifications, models, solution techniques and applications," Omega, Elsevier, vol. 45(C), pages 92-118.

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