Sensitivity Analysis of a Multi-Period Model for Multistage Multi-Product Production Planning with Random Yield

This paper discusses about imperfect production planning for a series of sequential production stages and due to process imperfectness, after each production stage a 100% inspection is carried out to screen defective items from non-defectives. As the rework is not allowed at all, defective items are scrapped. On the other hand, in the presence of random yield, production plans are unreliable rather than perfect yield. Consequently, we encounter with more number of shortage times. The production manager aims at minimizing total costs of production plan while considering a set of technological constraints. The model should decide about input of each product type at each planning period into each production stage. The mathematical model has been validated using a set of test data and a sensitivity analysis is provided based on yield distribution of production stages