Title :
Customer allocation and production optimization under plant outages
Author :
Dubedout, Hugues ; Neagu, Nicoleta ; Dejax, Pierre ; Yeung, Thomas
Author_Institution :
Claude Delorme Res. Center, Air Liquide, Jouy en Josas, France
Abstract :
We consider the allocation of customers and optimization of production planning over a single time period (e.g., 1 year). The problem consists of deciding customer allocation to production plants coupled to the decision on the production level for each plant in order to satisfy the customers´ demand. The decisions are taken under supply, production, distribution and contractual constraints. The main objective is to minimize the total estimated cost which includes production, distribution and contractual costs. The solution approach proposed is based on a stochastic programming with recourse formulation. We apply the proposed methodology to a real-world, large scale production and distribution problem under supply uncertainty occurring within the bulk supply chain of Air Liquide.
Keywords :
costing; customer services; industrial plants; production planning; stochastic programming; supply chains; Air Liquide; bulk supply chain; contractual constraints; contractual costs; customer allocation; customer demand; distribution constraints; distribution costs; distribution problem; plant outages; production constraints; production costs; production level; production optimization; production planning; production planning optimization; production plants; production problem; recourse formulation; stochastic programming; supply uncertainty; Decision support systems; TV; MIP´; customer allocation; production planning; stochastic programming with recourse; supply disruption;
Conference_Titel :
Industrial Engineering and Systems Management (IESM), Proceedings of 2013 International Conference on
Conference_Location :
Rabat