Production planning of a furniture manufacturing company with random demand and production capacity using stochastic programming.

ABSTRACT: In this article two multi-stage stochastic linear programming models are developed, one applying the stochastic programming solver integrated by Lingo 17.0 optimization software that utilizes an approximation using an identical conditional sampling and Latin-hyper-square techniques to reduce the sample variance, associating the probability distributions to normal distributions with defined mean and standard deviation; and a second proposed model with a discrete distribution with 3 values and their respective probabilities of occurrence. In both cases, a scenario tree is generated. The models developed are applied to an aggregate production plan (APP) for a furniture manufacturing company located in the state of Hidalgo, Mexico, which has important clients throughout the country. Production

SUBMITTER: Gomez-Rocha JE 

PROVIDER: S-EPMC8202929 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature