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A New Extended MILP MRP Approach to Production Planning and Its Application in the Jewelry Industry

Author

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  • Erhan Yazıcı
  • Gülçin Büyüközkan
  • Murat Baskak

Abstract

It is important to manage reverse material flows such as recycling, reusing, and remanufacturing in a production environment. This paper addresses a production planning problem which involves reusing of scrap and recycling of waste that occur in the various stages of the production process and remanufacturing/recycling of returns in a closed-loop supply chain environment. An extended material requirement planning (MRP) is proposed as a mixed integer linear programming (MILP) model which includes—beside forward—these reverse material flows. The proposed model is developed for the jewelry industry in Turkey, which uses gold as the primary resource of production. The aim is to manage these reverse material flows as a part of production planning to utilize resources. Considering the mostly unpredictable nature of reverse material flows, the proposed model is likewise transformed into a fuzzy model to provide a better review of production plan for the decision maker. The suggested model is examined through a case study to test the applicability and efficiency.

Suggested Citation

  • Erhan Yazıcı & Gülçin Büyüközkan & Murat Baskak, 2016. "A New Extended MILP MRP Approach to Production Planning and Its Application in the Jewelry Industry," Mathematical Problems in Engineering, Hindawi, vol. 2016, pages 1-18, February.
    • Handle: RePEc:hin:jnlmpe:7915673
    DOI: 10.1155/2016/7915673
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    Cited by:

    1. Germán Herrera Vidal & Danilo Abril Hernandez & Edgar Fernando Eslava & Jairo R. Coronado-Hernández & Samir F. Umaña Ibáñez, 2024. "Mathematical modelling of purchasing optimization for an MRP system with containerization constraints," OPSEARCH, Springer;Operational Research Society of India, vol. 61(3), pages 1108-1130, September.

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