Robust Production Plan with Periodic Order Quantity under Uncertain Cumulative Demands

Abstract

In this paper, we are interested in a production planning process in collaborative supply chains. More precisely, we consider supply chains, where actors use Manufacturing Resource Planning process (MRPII). Moreover, these actors collaborate by sharing procurement plans.We focus on a supplier, who applies the Periodic Order Quantity (POQ) rule to plan a production integrating the uncertain procurement plan sent by her/his customer. The uncertainty of the procurement plan is expressed by closed intervals on the cumulative demands. In order to choose a robust production plan, under the interval uncertainty representation, the min-max criterion is applied. We propose algorithms for determining the set of possible costs of a given production plan - due to the uncertainty on the cumulative demands.We then construct algorithms for computing a robust production plan with respect to the min-max criterion: the algorithm based on iterative adding constraints and the polynomial algorithms under certain realistic assumptions.